KALONDE NYATI, Lusaka
GOVERNMENT securities last week attracted a lot of interest from investors with the debt instruments being over-subscribed by more than K400 million, a financial market analyst says.
During the treasury bill auction, Government had targeted to raise K900 million but there was an over-subscription to the tune ofÂ K1.370 billion resulting in the Central bankÂ allocating K1.080 billion.
â€œA total of K1.080.00 million was allocated and the yield rates generally remained unchanged. The 364-day yield rate marginally dropped to 24.95 percent from 24.99 percent,â€ Zanaco Bank says in its daily treasury newsletter issued on Friday.
On the foreign exchange market, the Kwacha, which on Thursday strengthened against the US dollar due to slackening dollar demand and inflows of hard currency from corporate sellers and the interbank market, was on Friday expected to remain stable.
â€œ Today [Friday], we expect a quiet trading day ahead of the Christmas holiday this weekend with trading expected to be capped between K9.800 and K9.850 range,â€ the bank says.
Similarly, United Bank for Africa (UBA) says in its daily treasuryÂ newsletter that theÂ local currency market ,which opened Fridayâ€™s session trading at K9.78 and K9.83 on the interbank, was expected to maintain gains made in the previous trading session against the greenback.
â€œIn the near term we expect the local unit to trade within K9.80 and K9.87 on the bid and offer respectively.