Story of the Day:
Madison Finance Company earnings have weakened to K6.557 million for the year ending 31 December 2019 compared to K 21.537 million recorded as at 31 December 2018, according to audited financials published by the group. Read more
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With a cost to income ratio of 32%, Citibank Zambia’s after tax first quarter earnings rallied 21.4% to K42.4million compared to first quarter of 2019 and grew 42.3% compared to 4Q19. Read more: The Business Telegraph
Indo Zambia’s after tax first quarter earnings grew 57.0% to K36.9million from 1Q19, however this was 39.8% softer than 4Q19’s PAT. Indo’s headline earnings expanded 33.6% to K174.9million as its interest income lines rose 35.2% as the bank lengthened duration in an elevated Kwacha yield environment that climbed 56.2% and decent earnings 16.2% wider on the advances line reflecting the quality of the credit book. Read more: The Business Telegraph
Atlas Mara will reduce interest rates on existing loans to offer relief to customers affected by the impact of the coronavirus.
This is in line with the bank’s commitment to support micro and macro activities in the wake of the global pandemic which has paralysed various sectors of the economy. Read more: Zambia Daily Mail
FNB Zambia has initiated the rollout of cashflow relief interventions effective 30 April in line with the announcement of the K10 billion in funding by the Ministry of Finance. Read more: Zambian Business Times
International Business and Finance
The Trump administration is “turbocharging” an initiative to remove global industrial supply chains from China as it weighs new tariffs to punish Beijing for its handling of the coronavirus outbreak, according to officials familiar with U.S. planning. Read more: Reuters
South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) fell in April, with business activity contracting to its lowest ever. The index, which gauges manufacturing activity in Africa’s most industrialised economy, fell to 46.1 from 48.1 points in March. The business activity measure fell to 5.1, its lowest on record. Read more: Reuters
The US has said it wants to borrow a record $3 trillion in the second quarter, as coronavirus-related rescue packages blow up the budget. The sum is more than five times the previous quarterly record, set at the height of the 2008 financial crisis. Read more: BBC News
Hong Kong’s economy shrank 8.9% in the January-to-March period compared to a year earlier, according to estimates released by the government on Monday. It’s the third straight quarter of contraction for the trade and finance hub, and its worst quarterly drop since records began in 1974. Read more: CNN
Goldman Sachs Group Inc. and Morgan Stanley economists said there is evidence the world economy is starting to recover from the coronavirus and the restrictions placed on businesses and consumers. Read more: Bloomberg
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In 1 trade recorded yesterday, 200 shares were transacted yielding a market turnover of K4,000. Trading activity was recorded in AEL Zambia. The LuSE All Share Index (LASI) maintained its close at 4,149.17 points, as there were no share price movements. The market closed on a capitalization of K56,878,720,993 including Shoprite Holdings and K22,639,515,013 excluding Shoprite Holdings.
Chart of the Day: