Story of the Day:
The only listed reinsurance company on the Lusaka Securities and Exchange has announced that it will pay investors in the company 7 ngwee per share, according to a published statement from the company. Read more
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Richard Musukwa has assured mine suppliers and contractors on the Copperbelt that they will not plead for business contracts from the mines anymore. Mr. Musukwa says government wants to see a big chunk of the business contracts being given to Zambian contractors. He says government wants to bring back the dignity of the Zambian contractors to the Copperbelt. Read more: ZNBC
The Bank of Zambia has disclosed that negotiations on the resumption of the purchase of gold to establish gold reserves have advanced and that the central bank has concluded the initial negotiation stage and submitted a draft contract to the identified supplier that will govern gold purchases. Read more: Zambian Business Times
Copperbelt Energy Corporation (CEC) says Konkola Copper Mines (KCM) should come up with a solution for liquidating its debt because it can drown the power utility’s business. Last week, KCM obtained an interim injunction blocking a power restriction order from CEC, which it owes about US$132 million in overdue invoices. Read more: News Diggers
Arc Minerals Ltd has acquired a further 20% interest in Zaco Investments Ltd, increasing Arc’s interest to 72.5% from 52.5%. The additional interest has been acquired from Mumena Mushinge, a non-executive director of Arc and founder of the Zamsort project in Zambia. The remaining interest in Zaco will be held by Kopara Investments, Arc’s partner at the Zamsort project. Read more: Proactive Investors
International Business and Finance
The S&P 500 has surged 32% from its March 23 lows. The Nasdaq is now just 6% away from setting record highs. That breathtaking rebound suggests many investors are betting the ferocious response from the federal government will set the stage for a V-shaped economic recovery. President Donald Trump shares that optimism. “The market is up very big, and I think you’re going to have a ‘V,'” Trump told reporters Monday. Read more: CNN
The Russian economy contracted by more than a quarter in April, calculations based on official government statistics have shown. Russia’s GDP in April was 28% smaller in nominal terms than in the same period last year, economists said. Read more: The Moscow Times
Up to 60million people will be pushed into “extreme poverty” by the coronavirus warns the president of the World Bank.
David Malpass said the bank expects global economic growth to shrink by 5% this year as nations deal with the pandemic. Read more: BBC News
The pound is the worst-performing major currency this month, as renewed concerns about a no-deal Brexit combine with talk of negative interest rates to push the currency to its weakest since March’s dramatic sell-off. Sterling has lost nearly 4 per cent of its value against the dollar in May — putting it at the bottom of the G10 performance table. Read more: Financial Times
British engine-maker Rolls-Royce said that it would need to lay-off at least 9,000 of its 52,000 staff to make annual cost savings of 1.3 billion pounds ($1.59 billion) as it seeks to cope with the downturn in air travel caused by the pandemic. Read more: Reuters
Oil prices rose on early Wednesday morning amid signs of improving demand and a drawdown in U.S. crude inventories but worries over the economic fallout from the coronavirus pandemic capped gains. Read more: CNBC
Lafarge Africa will freeze capital expenditure this year, Chief Executive Khaled El Dokani said on Tuesday after the cement company forecast a drop in second-quarter sales as the coronavirus pandemic hits demand. Read more: Reuters
Capital Markets Report
In 27 trades recorded yesterday, 597,233 shares were transacted yielding a market turnover of K4,360,497. Trading activity was recorded in BATA, Copperbelt Energy Corporation, Zambia Breweries, ZCCM, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 4,078.25 points, as there were no share price movements. The market closed on a capitalization of K56,571,643,786 including Shoprite Holdings and K22,332,437,806 excluding Shoprite Holdings.
Chart of the Day: