Still Bullish Zambian Equities

After the Lusaka All-Share Index (LASI) exceeded our 2,550 target on June 2, we remain bullish Zambian equities. Closing at 2,725 on June 18, the index has rocketed 30.0% from its two-year low of 2,096 touched in mid-March. With only 10 marginal daily declines compared to 32 strong daily increases over the 42 sessions since its low, gains since we turned bullish at 2,210 stand at 23.3%. Having come so far so quickly, we would turn neutral should the index retrace below 2,695. Nevertheless, we believe that the index could extend its recovery further as the domestic and global economic contexts improve. We are now targeting 2,900.

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