Securities and Exchange Commission says high money markets rates, unstable exchange rates and raising inflation rate negatively affected the performance of capital markets in 2019.

Addressing the media in Lusaka, Commission Chief Executive Officer Philip Chitalu has since described the performance of Capital markets last year as fair.
Mr. Chitalu says the aforementioned factors affected the performance of the economy which also affected returns on investments.

“The  performance of capital markets in 2019 was bearish, this can be attributed to high  money market rates, unstable exchange rates and  rising inflation rates that all of which affected the performance of the economy” Mr Chitalu said. 
He said depreciation of the Kwacha in the year under review had negative impacts on foreign investors’ position while high yields on government securities affected the performance of the corporate debt as it made it expensive for issuers to issue debt securities.
“Depreciation of the local currency also affected foreign investor’s position while higher yields on government securities affected the performance of corporate debt making it expensive for issuers to issue debt securities.

“At the same time marking shares unattractive compared to government paper and other money markets assets”.
Mr Chitalu added that the commission is also spearheading the development of  a capital  market master plan that  is expected to spur the developments of capital markets in the country.
“The master plan will be for 10 years and will encompass the vision of developing markets in the country” He said.