Story of the Day:
In the battle of opposites as we come to the close of the fourth quarter of the year. The equities’ market records a score of 8% to 92% on the bond market. 2020 was generally a rough year, more especially for the equities market as it lost a lot of revenue due to production costs, devaluation of the Zambian kwacha against the US Dollar as well as the global pandemic, though most companies lost revenue and recorded negative earnings per share, some companies securities recorded profits. Read more
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The 2400MW Batoka Gorge Hydro-Electric Scheme is set to generate around US$750 million annual revenue and spawn modern cities for Zimbabwe and Zambia. Read more: The Herald
Zambian inflation quickened for the fourth straight month in December due to food prices. Consumer prices rose 19.2% from a year earlier, compared with 17.4% in November, Mulenga Musepa, the interim statistician general at the Zambia Statistics Agency, told reporters in Lusaka, the capital. Costs increased 3.2% in the month. Read more: Bloomberg
President Edgar Lungu says the country’s economy is expected to rebound in 2021. The President however says this will require the support of every Zambian. He has urged Zambians to embrace hope and determination in 2021. The Head of state also says there is need for the country to go to the drawing board and see how it can benefit from its natural resources. Read more: ZNBC
The central bank in Africa’s red metal hotspot will seek to sell government securities worth K12.3bln ($58.5mln equivalent) in the first quarter of 2021. According to a Bank of Zambia prospectus shared in the local press, the central bank will offer treasury bills in six lots of K1.3bln and bonds in three lots of K1.5bln respectively. Read more: The Business Telegraph
A South African-based Zambian has established the first ever Granite Mine in Pemba district, Southern province. Zambia Universal Quarries Limited has been set up by African Union Holdings, at a cost of $10 million and has created employment for about 52 people. Read more: ZNBC
The government has given a green light for the National Sugar Corporation (NSC), a local firm scheduled to set up sixteen modern cities and industries across the country. Disclosing this in an interview with the media yesterday, Corporation Executive Director Edgar Ngoma said Secretary to Cabinet Simon Miti recently gave his firm a go-ahead to commence the multi-million project. Read more: Lusaka Times
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Europe has finalized an investment agreement with China that is designed to rebalance trade with the world’s second largest economy, despite US concerns that the deal could be counterproductive. Read more: CNN
The New York Stock Exchange (NYSE) said it will delist three Chinese telecommunications firms based on claimed links with its military
China Mobile, China Telecom and China Unicom Hong Kong have all been targeted by the Trump administration. Shares in the telecoms giants will be suspended on the NYSE this week while proceedings to delist them have begun. Read more: BBC News
Bitcoin’s value surged above $34,000 for the first time on Sunday as the leading cryptocurrency continued to soar. It put the gain this year at almost $5,000, although by 17:00 GMT the price had drifted lower to about $33,000, according to the Coindesk website. Read more: BBC News
OPEC and its allies, led by Russia, stand ready to adjust their plans for a gradual increase in oil output by 2 million barrels per day in the next months depending on market conditions, OPEC Secretary General Mohammad Barkindo said on Sunday. Read more: Reuters
African countries began officially trading under a new continent-wide free trade area on Friday, after months of delays caused by the global coronavirus pandemic. But experts view the New Year’s Day launch as largely symbolic with full implementation of the deal expected to take years. Read more: CGTN Africa
Nigeria’s President Muhammadu Buhari on Thursday gave his final agreement on the country’s 2021 budget on New Year’s Eve. It sets a record of 13.5 billion Naira, or over 28 billion euros, which is about 20% higher than last year and comes as Africa’s most populous country faces a recession in the wake of the coronavirus pandemic. Read more: Africa News
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In 42 trades recorded on Friday, 14,635 shares were transacted yielding a market turnover of K29,210. Trading activity was recorded in Cavmont Capital Holdings Zambia and Standard Chartered Zambia. The LuSE All Share Index (LASI) maintained its close at 3,912.33 points,as there were no share price movements. The market closed on a capitalization of K57,508,103,642 including Shoprite Holdings and K23,268,897,662 excluding Shoprite Holdings.
Chart of the Day: