LuSE Expects Market Activity to Recover Following General Election

The Lusaka Securities Exchange (LuSE) expects market activity to increase following the conclusion of Zambia’s General Election, as greater economic certainty encourages investors to return to the market.

LuSE Chief Executive Officer Nicholas Kabaso said activity remained subdued during the first half of the year, largely due to global uncertainty and Zambia’s election-related risk profile. Offshore investors were particularly inactive, reducing liquidity and placing pressure on share prices.

The LuSE All-Share Index recorded limited movement during the period, with the market dominated by sellers and institutional investors facing difficulties offloading positions. Kabaso also pointed to international uncertainty, including the Iran-Israel conflict, as contributing to weaker investor sentiment.

Despite reduced foreign participation, retail investors remained active, although their smaller transaction values were insufficient to offset the decline in institutional investment.

With the election now concluded, LuSE expects investors to gain greater clarity over Zambia’s economic direction. Attention will also turn to the forthcoming national budget, with its policy announcements expected to provide further indications of the country’s economic outlook.

Kabaso said LuSE remains optimistic that activity and liquidity will improve towards the end of the year as institutional investors rebalance their portfolios, although overall market growth is expected to remain marginal.