Story of the Day:
Shareholders of newly Lusaka Securities and Exchange-listed tree processing company ZAFFICO will have to wait another year before they are able to meet face to face with their management team in light of the maiden annual general meeting being held via ZOOM amidst COVID19 restrictions, according to a statement from the company. Read more
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Month-end obligations by corporates are expected to reverse the current market tone on the foreign exchange market, FNB Zambia has predicted today. The Kwacha seems to have aligned with international markets on Friday as the US dollar remained king globally. FNB reports that the local unit’s gains from previous weeks are slowly being reversed as Dollar demand continues to tick up. The market opened at 18.55/18.60 and rose to 18.65/18.70 as at close of business. Read more: Zambia Reports
Chinese run Kingphar Pharmaceuticals Limited has been placed under supervisory liquidation. This follows a Consent Order to place Kingphar Company Zambia Limited under supervision and commencement of business rescue proceedings. Kingphar Pharmaceutical, located in the Lusaka East MFEZ was only commissioned two years ago and was supposed to be producing injective drugs and oral preparations. Read more: Lusaka Times
Global mining giant Rio Tinto has signed an earn-in and joint venture agreement with Vancouver-headquartered Midnight Sun Mining. Under the agreement, Rio Tinto can buy up to a 75% interest in the Solwezi licences in Zambia for a total of $51 million. The Solwezi licences consist of two individual exploration licences. Read more: Mining
The Energy Regulation Board (ERB) says current gains from reduction in international oil prices have been negatively affected by the depreciation of the Kwacha during the same period. ERB said this has resulted no price changes made since the last review in December, 2019. Read more: The Independent Observer
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Barclays on Wednesday reported a 42% fall in first-quarter net profit year-on-year and opted to take a £2.1 billion ($2.62 billion) credit impairment charge, as it attempts to anticipate the fallout from the coronavirus pandemic. The British bank posted net profit attributable to shareholders of £605 million for the first three months of the year, down from £1.04 billion for the same period last year. Read more: CNBC
As policymakers from America’s central bank prepare to meet – virtually – this week, they will be looking to see if the extraordinary steps they have taken to confront the world’s most severe economic crisis since the Great Depression are working. Read more: BBC News
British Airways is preparing to cut almost 30 per cent of its 42,000 workforce as the coronavirus crisis wreaks more damage on the battered aviation sector. IAG, the airline’s parent company, warned that a return to 2019 passenger levels would take “several years” and announced plans to cut up to 12,000 jobs. Read more: Financial Times
Ford lost $2 billion in the first quarter, and it warned investors Tuesday that its finances will be far worse in the current quarter. The company it expects a loss before interest, taxes and special items to reach $5 billion in the quarter, compared to a $632 million loss on that basis in the just-completed quarter. Read more: CNN
Kenya’s economy grew by 5.4% in 2019, down from 6.3% the previous year, partly because of a slowdown in the agricultural, manufacturing and construction sectors, finance minister Ukur Yatani said on Tuesday. Read more: Reuters
Nigeria’s President Muhammadu Buhari is seeking approval to borrow 850 billion naira ($2.36 billion) from the domestic capital markets to fund the 2020 budget, according to a request read in the upper house of parliament on Tuesday. Read more: Reuters
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In 4 trades recorded yesterday, 996 shares were transacted yielding a market turnover of K1,041. A share price gain of K0.05 was recorded in Copperbelt Energy Corporation. The LuSE All Share Index (LASI) closed at 4,149.17 points, 0.45% up from its previous close of 4,130.50 points. The market closed on a capitalization of K56,878,720,993 including Shoprite Holdings and K22,639,515,013 excluding Shoprite Holdings.
Chart of the Day: