Story of the Day:
31 March 2020 was a day of high expectations in the energy and mining sectors. A big announcement which potentially would change the complexion of the two sectors in Zambia was being awaited. The proclamation that came however was received with mixed reactions by the players in the two sectors and the general public. Zesco and its biggest electricity off-taker, Copperbelt Energy Corporation, had failed to reach an agreement on the renewal of the Bulk Supply Agreement which was expiring that same day. Read more
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The COVID-19 pandemic will negatively impact revenue collections this year because of the decline in copper prices that has already affected Mineral Royalty Tax and projections for Corporate Income Tax from the mining sector, the Zambia Revenue Authority (ZRA) has disclosed. Read more: News Diggers
Mines and Mineral Resources Minister Richard Musukwa says government is putting in place measures to provide relief for the mining industry but has warned mining companies not to take advantage of the current circumstances amidst the Coronavirus pandemic. Read more: News Diggers
Zambia’s Eurobonds extended losses on Wednesday and its currency tumbled to a record low after the country asked banks for proposals on reorganising as much as $11.2 billion of foreign debt. Read more: Moneyweb
Opposition United Party for National Development (UPND) leader Hakainde Hichilema has offered to help government reorganise the country’s debt as the costs of debt servicing rise, stressing further the economy already under distress. Hichilema further said this will be done for free as they had patriots that were ready to move on this distressing situation. Read more: Zambian Observer
The Zambia Revenue Authority (ZRA) says the cost of importing ethanol into the country has reduced to about 100,000 Kwacha from 800,000 Kwacha for a 37,000 litres tanker truck. The zero rated ethanol is, however, only restricted for medical use such as the manufacturing of hand sanitizers. Read more: ZNBC
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President Donald Trump is trying to get the world to cut oil production by 10 million barrels a day in an effort to end a market-share war that sent crude prices plunging to the lowest levels in two decades. Trump shocked markets on Thursday by tweeting that he expected Russia and Saudi Arabia alone to cut about 10 million barrels — or roughly a 10th of global petroleum, sending oil prices soaring. Read more: Bloomberg
Middle Eastern and African governments must act faster to protect their airlines, the International Air Transport Association said on Thursday, warning their losses from the coronavirus pandemic had risen to $23 billion. Read more: Reuters
The Board of Directors of the African Development Bank on Tuesday approved $2 million in emergency assistance for the World Health Organization (WHO) to reinforce its capacity to help African countries contain the COVID-19 pandemic and mitigate its impacts. Read more: Africa News
Boeing is offering employees buyouts as its CEO said it will take years for the airlines and aerospace industry to recover from the coronavirus crisis. In a memo to employees, Boeing CEO Dave Calhoun said the company is offering voluntary layoff packages that will provide exiting employees with pay and benefits. Calhoun said the company is doing so “to reduce the need for other workforce actions.” Read more: CNN
America’s biggest bank and the US Treasury secretary are on a collision course over the federal government’s $350bn emergency small business lending programme, with JPMorgan Chase saying it would “most likely” be unable to launch the loans as scheduled on Friday. Read more: Financial Times
Capital Markets Report
In 18 trades recorded yesterday, 427,880 shares were transacted yielding a market turnover of K231,660. A share price gain of K1.00 was recorded in AEL Zambia. Trading activity was also recorded in Airtel, Copperbelt Energy Corporation, Standard Chartered Bank Limited and Zambia Sugar. The LuSE All Share Index (LASI) closed at 4,233.69 points, 0.11% up from its previous close of 4,229.00 points. The market closed on a capitalization of K57,246,647,914 including Shoprite Holdings and K23,007,441,934 excluding Shoprite Holdings.
Chart of the Day: