Business
BAT shares jump 8% as markets bet on higher Tobacco prices
According to the Stockbrokers Zambia Weekly Equity
Picture: Zambian Business Times
According to the Stockbrokers Zambia Weekly Equity And Economic Report for the Market period ended 30th October British American Tobacco (Zambia) is reported to have recorded a price increase by 8%.
The report seen by the Zambian Business Times-ZBT shows that the British American Tobacco Zambia was the lead price gainer for the period under review on the exchange recording an increase of K1 ($0.05) or roughly 8.01% to close at K13.49 (USD 0.67).
The Zambian Business Times- reached out to a well known Broker to get a comment on the factors that triggered the 8% in the company’s share price?
In response the Broker whose name remains withheld attributed the company increase in share prices due to high demand of investors trying to purchase shares in the company owing to the increase in Tobacco prices.
“ The increase in Tobacco prices can be attributed to the increase of British American Tobacco recording a share price increase leading to increased demand in the number of investors wanting to acquire a share in the company”, said the Broker.
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The source also indicated that the anticipation from investors buying shares in the company is that increased price will lead to positive performance in the company’s financials and possibly lead to dividend declaration.
“ The anticipation from investors is that with increased tobacco prices, the company will record a positive performance that may make the company record profit and dividend declaration”, said the Broker.
Article by Justine Phiri.
Source: Zambian Business Times — Read more
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