LONDON- Wall Street bank JPMorgan recommended buying Zambia's local currency sovereign bonds on Monday after opposition leader Hakainde Hichilema secured a landslide election victory.
"The reduction of political risks make us more comfortable about investing in Zambian fixed income assets," said JPMorgan's Ayomide Mejabi in a note to clients, specifically mentioning the February 2027 issue due to its liquidity while also predicting more portfolio inflows in the wake of the election.
"President-elect Hakainde Hichilema is viewed as being more market-friendly and has publicly supported an IMF-backed reform programme," Mejabi added.
JPMorgan kept an unchanged market weight recommendation on U.S. dollar bonds. Mejabi also added calculations showed the kwacha currency was still 15% undervalued.
(Reporting by Karin Strohecker; Editing by Tom Arnold) ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters Messaging: karin.strohecker.reuters.com@reuters.net))
