Story of the Day:
In the final week of March as well as the first week of April, our pattern continues as we close off the month of March the bond market completely eclipses the equities market with a score of 100% Read more
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Glencore has plunged itself into a dispute with the government of Zambia after the company said it was closing its copper business in the country for three months because of low commodity prices and the coronavirus pandemic. Richard Musukwa, Zambian minister of mines and mineral development, said he would block Glencore’s move, which he described as unjustified and illegal. Read more: Financial Times
The Bank of Zambia, in a memo to commercial banks signed by the Deputy Governor Operations Dr. Francis Chipimo on 07 Apr, issued more relaxed classification and provisioning credit risk rules. These measures were necessitated by deepening credit and liquidity risks as a consequence of COVID19 pandemic effects that is forecast to adversely impact counterparty credit quality. Read more: The Business Telegraph
The Zambia Chamber of Small and Medium Enterprise Association – ZCSMEA has called on Small and Medium Entrepreneurs – SME’s to consider conducting their businesses using online platforms, to avoid physical contact with consumers at the risk of spreading Coronavirus (COVID-19). Read more: Zambian Business Times
The Chamber of Mines has welcomed the removal of some of the provisions of SI 90 relating to claim of VAT on imported spare parts and lubricants and the suspension of import duties on the importation of concentrates in the mining sector aimed at combating the effects of COVID-19 to ease pressure on companies. Read more: Zambian Business Times
Governmen’s Tripartite Agreement between the Food Reserve Agency (FRA) and selected millers to reduce mealie meal prices has failed to yield the desired results, says the Indaba Agricultural Policy Research Institute (IAPRI). Read more: News Diggers
Modern Millers Limited (MML), a Zambian registered company, intends to invest about US$2.5 million in a cooking oil processing plant in Chibombo, Central Province. The project, which falls within an agro-processing industry, will involve extraction of oil and cake from dry soya bean seed, and will also create jobs for at least 30 people in the area. Read more: Zambia Daily Mail
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A total of 81% of the global workforce of 3.3 billion people have had their workplace fully or partly closed. Restrictions on daily life have led to the closure of many companies and the laying off of staff – either permanently or temporarily. The International Labour Organization (ILO), an agency of the United Nations, has been looking at the global impact with a series of charts. Read more: BBC News
President Donald Trump ramped up threats to use tariffs to protect the U.S. energy industry from a historic glut of oil, as efforts to forge a global deal to cut output appeared to lose momentum. Trump said at a White House press briefing he’d use tariffs if needed to protect the domestic oil industry, even as he predicted that Saudi Arabia and Russia would come to an agreement to cut output and stem the rout in prices. Read more: Bloomberg
Kenya’s economic growth will slow to 3% or less this year from an earlier forecast of about 6% due to the effects of the novel coronavirus, its finance minister said on Tuesday. The finance ministry had earlier given a 6.1% growth forecast for 2020. Read more: Reuters
China must do more to help ease the debt burden of African countries facing economic calamity from the coronavirus pandemic, Ghana’s finance minister said. “African debt to China is $145 billion or so, over $8 billion of payments is required this year … So that needs to be looked at.” Read more: Reuters
The U.S. economy is in a contraction and could reopen in four to eight weeks, Larry Kudlow, the director of the National Economic Council, said Tuesday. Read more: Wall Street Journal
Capital Markets Report
In 6 trades recorded yesterday, 473,819 shares were transacted yielding a market turnover of K487,829.64. A share price loss of K0.21 was recorded in Copperbelt Energy Corporation. Trading activity was also recorded in Zambia Breweries, Zambeef, Zanaco and Zaffico on the quoted tier. The LuSE All Share Index (LASI) closed at 4,152.99 points, -1.80% down from its previous close of 4,227.66 points. The market closed on a capitalization of K57,220,397,908 including Shoprite Holdings and K22,981,191,928 excluding Shoprite Holdings.
Chart of the Day: