Story of the Day:
With the granting of the exploration license by the Ministry of Mines and Minerals Development end of March 2020, ZCCM Gold moved on-site and started mobilisation in the first week of April 2020 to undertake detailed exploration that will determine the extent of gold mineralisation in the license area. Read more
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Zambia’s budget has been thrown into disarray by the economic blow from the coronavirus outbreak and the government needs to take action to support businesses, President Edgar Lungu said on Friday. Read more: Reuters
The Bank of Zambia recorded a 129% bid cover ratio in Thursday 23 April Treasury bill sale raising K1.2billion in cash terms of the K950million of short dated assets on offer. Demand for paper was in excess of K1.5billion with K600million liquidity from maturities being reinvested. Of the K1.2billion sold, about a yard was housed in the 1year yielding 29.25%. The Business Telegraph
President Edgar Lungu on 25 April, directed his Commerce and Trade Ministry to ensure local farmers are given priority to supply agriculture products to super markets and chain stores. Read more: The Business Telegraph
Government says the Covid-19 Pandemic will affect the launch and Operationalization of Zambian Airways. Transport and Communication Minister Mutotwe Kafwaya says it will not be ideal to launch Zambian Airways now when the Aviation Industry is paralyzed. Read more: ZNBC
Finance Minister Bwalya Ng’andu says investment in Information Communication Technology (ICT) has enabled the government to closely track non-tax revenue. Dr. Ng’andu says the millions of dollars invested in the National Data Centre is worthwhile because the system allows government track revenue from toll gates and immigration, among others. Read more: Lusaka Times
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Ratings agency Moody’s cut its forecast for South Africa’s economy to a 6.5% contraction in fiscal 2020, saying the country’s 500 billion rand ($26.29 billion) rescue package will weaken its public finances and constrain government’s ability to provide support to state-owned firms. Read more: Reuters
As the world faces economic challenges due to the impact of COVID-19, the World Bank predicts a sharp decline in remittance in 2020. “Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” said World Bank Group President David Malpass. Read more: Africa Business Chief
EU leaders have agreed to create a fund that could raise at least 1 trillion euros ($1.1 trillion) to rebuild regional economies ravaged by the coronavirus pandemic. Read more: CNN
The U.S. Federal Reserve, Bank of Japan and European Central Bank, which together cover almost half of global output, will all convene meetings of policy makers this week after the pandemic-driven freezing of economies and turmoil in financial markets propelled them into action. Read more: Bloomberg
Boeing has terminated its $4.2 billion deal with Brazilian aircraft maker Embraer, the American company announced Saturday. The deal would have given Boeing a bigger stake in the market for smaller jets and help the company develop airplanes more cheaply. Read more: CNBC
The UK government has quadrupled its borrowing plans over the next three months as it grapples with the severe contraction of the economy during the coronavirus pandemic and additional pressure on the public finances. The Treasury said it would seek to raise £180bn over the next three months to allow it to meet its spending needs as tax revenues plunge. Read more: Financial Times
Air France-KLM has secured at least €9bn ($9.7bn) in government aid, as the Franco-Dutch airline group struggles to stay afloat because of the coronavirus outbreak. The French authorities said Air France would get €3bn in loans and another €4bn in state-guaranteed funds. Read more: BBC News
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In 14 trades recorded on Friday, 2,575 shares were transacted yielding a market turnover of K7,356. A share price gain of K0.02 was recorded in Zanaco, and a share price loss of K0.06 was recorded in Lafarge. Trading activity was also recorded in AEL Zambia , British American Tobacco, Puma and Zambeef. The LuSE All Share Index (LASI) closed at 4,145.82 points, 0.09% up from its previous close of 4,141.94 points. The market closed on a capitalization of K56,864,150,163 including Shoprite Holdings and K22,624,944,183 excluding Shoprite Holdings.
Chart of the Day: