Story of the Day:
The only tree processing company listed on the Lusaka Securities and Exchange has reported its half-year performance which is weaker than anticipated due to reduced sales on account of COVID 19 and challenging negotiations suppliers. Read more
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Zambian President Edgar Lungu told his new central bank chief to stabilize Africa’s worst-performing currency as the southern African nation tries to convince private creditors to provide debt relief. Lungu urged Governor Christopher Mvunga at a swearing-in ceremony on Tuesday to “redouble efforts” and work with the Finance Ministry to achieve stability in the kwacha. Read more: Bloomberg
Standard Bank trading in Zambia as Stanbic Bank says the Zambian government’s proposed timeline for debt restricting may be too ambitious. According to a note from its Africa Research team, Stanbic says it suspects that negotiations with external creditors and the IMF could potentially be longer than the 6-month period the government intends. Read more: Lusaka Times
ZCCM-IH has posted huge after tax profits of K438.9 million during its financial half-year ending June 30, 2020 compared to K128.4 million by September 30, 2019, triggered by increased income derived from exchange rate gains from the group’s foreign-denominated assets. And ZCCM-IH says copper prices are expected to steadily increase on the back of solid recovery in Chinese demand for the red metal. Read more: News Diggers
Zambian Breweries has launched a deliverly service that its customers can use to get their ordered products delivered to their doorsteps or business premises. The brewer in adapting to the COVID-19 challenges has adopted the use of digital technology and e-commerce to streamline its delivery service. This is expected to positively contribute to growth in overall sales volumes. Read more: Zambian Business Times
United Bank for Africa (UBA) Zambia has announced the appointment of a new Chief Executive Officer, Chinedu Obeta, with effect from October 1st, 2020. The new Chief Executive Officer takes over from Emeka Dimanoshie who has been at the helm of the bank for the last four years. Read more: ZNBC
The Tanzania-Zambia Railway Authority (TAZARA) has raised US$27.52 million in revenue in the financial year ended June 30 supported by improved haulage of cargo, which went up by 4% to 182,302 metric tonnes. And the firm’s board of directors has approved a budget proposal to transport 400,000 metric tonnes of cargo and 3.4 million passengers in the 2020/2021 financial year from which US$48.27 million is expected to be raised. Read more: Zambia Daily Mail
International Business and Finance
President Donald Trump said Tuesday he has told his administration’s negotiators to end coronavirus stimulus talks with Democrats until after the Nov. 3 election. The declaration halts an ongoing push to send trillions of dollars more in relief to Americans as the outbreak rampages through the U.S. and the economy struggles to recover from virus-related shutdowns. Read more: CNBC
America’s trade deficit widened to more than $67 billion in August, rising to its highest level in 14 years, the Census Bureau reported on Tuesday. The deficit has rapidly expanded from $37 billion in February, before the Covid-19 pandemic swept across the country and sunk the US economy. Foreign trade was hit hard by lockdown efforts, and exports still haven’t recovered to their pre-pandemic levels, experts said. Read more: CNN
America is on the long road to economic recovery from the pandemic recession, but dark clouds remain on the horizon. The recovery is far from complete, and the US economy remains of danger of shifting into reverse once again. One major risk factor: A rise in Covid-19 infections, Federal Reserve Chairman Jerome Powell said Tuesday at the National Association for Business Economics annual meeting. Read more: CNN
Saudi Aramco plans to boost its oil production capacity so it can pump as much of the kingdom’s vast oil reserves when demand picks up – before a shift to cleaner energy makes crude all but worthless, industry sources and analysts told Reuters. Read more: Reuters
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There were no trades recorded yesterday. The LuSE All Share Index (LASI) maintained its close at 3,811.81 points, as there were no share price movements. The market closed on a capitalization of K55,412,419,062 including Shoprite Holdings and K21,173,213,082 excluding Shoprite Holdings.
Chart of the Day: