Maravi

Siwale advises on speculative participation in capital market

Siwale advises on speculative participation in capital market
By Chiwoyu Sinyangwe
Wednesday May 07, 2008 [04:00]

SPECULATIVE short-term participation of local investors is working against the principal role of capital market which is mobilisation of savings for long-term economic development, a market expert Ceaser Siwale has observed. Siwale, who is also Pangaea Renaissance Capital Limited managing director, discouraged Zambians from engaging in speculative participation in the capital market.

In an interview, Siwale explained that speculative participation of the capital market was not only working against the spirit of citizens’ economic empowerment but also created unnecessary instability in the share price of some of the very attractive offering.

"I will encourage people who want to buy shares to read the offer document in its entirety so that they understand the risk levels involved and expectations of their decision and most importantly to do so in the spirit of long-term investments and that can only be done by understanding what is involved in investing in the stock exchange." Siwale said. "Our people need to take a long-term view when they are making decision to buy shares. This issue of buying shares for, say, you hold on for a month and then sell them again is not going to work to the benefit of anyone. Those that have maintained their investments over the Lusaka Stock Exchange (LuSE) over a longer period of time have been able to achieve greater sustainable growths in their investments"

He also urged Zambians to fully acquaint themselves with the benefits and implications of buying shares in a listed company before committing themselves to buying the shares.
Recently, Copperbelt Energy Corporation (CEC) shares jumped by over 200 per cent from the initial price of K450 within a month after being listed but has come down to slightly above K600.

Labels: CEASER SIWALE, SPECULATION

posted by MrK @ 6:01 AM