Story of the Day:
The fully integrated cold chain foods and retail company with operations in Zambia, Nigeria, and Ghana, Zambeef, has forecast satisfactory financial performance to be recorded in accordance with guidance estimates, according to a statement from the company. Read more
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Zambia has applied to the International Monetary Fund (IMF) for a COVID-19-related rapid credit facility as it starts the process of shortlisting financial advisers to help reduce its debt load, the finance ministry said on Sunday. Read more: The New York Times
President Edgar Lungu has directed the Ministry of Finance to simplify the modalities on how companies can access the ten billion Kwacha stimulus package which has been provided by government. Read more: ZNBC
Commerce Minister Christopher Yaluma says Zambia’s trade has slightly declined due to the effects of the Covid-19. Mr. Yaluma, however, says the country is still coping despite the drop in trade because of key interventions put in place by government. Read more: ZNBC
TopStar has launched StarTimes GO, an integrated Electronic Shopping (E-shopping) platform on premium selections only. Read more: Zambia Daily Mail
International Business and Finance
Asian shares followed Wall Street higher on Monday as investors looked ahead to more countries restarting their economies, even as some reported an unwelcome pick up in new coronavirus cases. European markets are also heading north, with EUROSTOXX 50 and FTSE futures up about 1%. E-Mini futures for the S&P 500 opened softer but bounced as the Asia day wore on and was last up 0.5%. Read more: Reuters
Saudi Arabia is tripling its value added tax as part of austerity measures to support its coronavirus-hit economy. The government also said it will suspend its cost of living allowance to shore up state finances. The oil-rich nation has seen its income plummet as the impact of the pandemic has forced down global energy prices. Read more: BBC News
The coronavirus pandemic will cause China’s purchases of U.S. goods this year to fall way short of what was agreed to in the “phase one” trade deal, according to a forecast by think tank Center for Strategic and International Studies. Read more: CNBC
China could find itself having to write off massive loans as countries that owe Beijing money under its massive infrastructure project struggle with mounting debts in the coronavirus fallout, analysts say. China’s Belt and Road Initiative is highly controversial and widely criticized for saddling many countries with debt. Read more: CNBC
The coronavirus crisis is likely to bring an end to a 30-year run of disinflationary forces and herald the return of accelerating inflationary pressure that’s likely to overshoot central bank targets, Morgan Stanley said. Bloomberg
Some of President Donald Trump’s top economic advisers emphasized on Sunday the importance of states getting more businesses and offices open even as the pandemic makes its way to the White House complex, forcing three members of the administration’s coronavirus task force into self-quarantine. Read more: Market Watch
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In 30 trades recorded on Friday, 17,969 shares were transacted yielding a market turnover of K36,509. A share price gain of K0.01 was recorded in ZCCM. Share price losses were recorded in Airtel of K1.99, and Copperbelt Energy Corporation of K0.01. Trading activity was also recorded in AEL Zambia, PUMA, Standard Chartered Zambia, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,094.16 points, 1.25% down from its previous close of 4,145.44 points. The market closed on a capitalization of K56,640,868,984 including Shoprite Holdings and K22,401,663,004 excluding Shoprite Holdings.
Chart of the Day: