Story of the Day:
Three weeks into May 2020 trading on the LuSE, week three mirrors week two as the equities market records a 3% and the bond market with 97%. Read more
Local Business and Finance Sponsored By Liquid Telecom
Bank of Zambia governor Dr Denny Kalyalya says the K10 billion Medium-Term Loan Refinancing Facility has a strict eligibility criterion because it is targeted at those who can pay back the money. Meanwhile, Zambia’s international gross reserves have continued falling to record lows of US $1.39 billion, representing just two months of import cover, largely triggered by heightened debt servicing. Read more: News Diggers
Mahogany Air CEO Jim Belemu has announced that the airline plans to resume its scheduled flights on 15th June. Dr. Belemu has asked government for waivers on certain taxes such as Airport Taxes, Ground Insurance among others to keep the business afloat as they resume operations.He said the airline is expected to lose about K40 million by the end of 2020 Read more: Lusaka Times
The construction of the long – awaited North- West Railway line, which will link Zambia with Angola, seems a reality following the raising of US$1.2 billion from development banks. Read more: Zambia Daily Mail
Chambishi Copper Smelter (CCS) says Government’s delay to pay K1.8 billion in VAT refunds has constrained the company’s cash flow. And Minister of Finance Bwalya Ng’andu said Government will do its best to pay VAT refunds to the company because it understands the impact that non-payment can pose on operations. Read more: Zambia Daily Mail
International Business and Finance
HSBC’s board is set to deepen the biggest restructuring in the bank’s 155-year history after deciding that the coronavirus crisis requires more drastic measures. The board is now pressing executives to restart the restructuring and come up with even more radical changes, including further cuts or even a possible sale of its US business alongside its retail network in France and operations in smaller non-strategic countries. Read more: Financial Times
Stock futures traded higher early Tuesday morning to begin a holiday-shortened week, as optimism about a potential coronavirus vaccine built. Futures on the Dow Jones Industrial Average jumped 416 points, pointing to an implied opening jump of around 429 points. S&P 500 and Nasdaq 100 futures also pointed to a positive open for the indexes on Tuesday. Read more: CNBC
Lufthansa has agreed a rescue deal worth $9.8 billion with the German government that saves it from collapse. The German government will take a 20% stake in the firm, which it intends to sell by the end of 2023. Read more: BBC News
Nigeria’s economy grew 1.87% in the first three months of 2020 from a year earlier, the statistics office said on Monday, shrinking from the previous quarter as oil prices and international trade fell due to the coronavirus pandemic. Read more: Africa News
Aston Martin confirmed on Tuesday that Tobias Moers, CEO of Mercedes-AMG, would become chief executive on August 1, replacing Andy Palmer who stepped down on Monday. Read more: Reuters
Singapore’s economy is facing its worst contraction since independence as the coronavirus outbreak and measures to contain it pummel the trade-reliant city state. The government expects gross domestic product to shrink 4% to 7% this year, down from a previous forecast of a 1%-4% contraction the Ministry of Trade and Industry said in a statement Tuesday. Read more: Bloomberg
Daimler AG is pushing ahead with plans to produce an all-electric version of its flagship Mercedes S-Class sedan from next year even as it cuts back in other areas to weather a slump in demand across the industry. The company’s main Mercedes-Benz cars unit aims to make all of its factories CO2-neutral by the end of 2022, CEO Ola Kallenius said Monday in a webcast. Read more: Bloomberg
Capital Markets Report
There were no trades recorded yesterday. 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: