Zambian economy strengthens

ZAMBIA’s currency might gain 18% and stocks of Africa’s biggest copper producer are likely to rally 15% this year as the nation’s economy and earnings improved, Renaissance Capital said yesterday. The Lusaka Stock Exchange all share index gained 12% last year, the Moscow-based brokerage wrote. The economic growth is likely to remain at about 6,3% in 2010, according to the report.

Zambian shares traded at 9,8 times estimated earnings, Rencap said, compared with 12,95 times for the MSCI emerging markets index, according to Bloomberg.

The Zambian kwacha is expected to appreciate, the foreign direct and portfolio inflows to improve and copper prices to remain high, according to the analysts.

http://www.businessday.co.za/Articles/Content.aspx?id=104423

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