Story of the Day:
After months of having the Chief Executive Officer position of Zambia’s first listed tree processing company in interim status, ZAFFICO has announced Kangwa David Bwalya is its choice to lead the company in its maiden year as a listed company on LuSE, according to a statement from the company. Read more
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Zambia recorded the steepest slide in private sector pulse as COVID risks deepen. The red metal producer headlined 37.3 in April from 44.7 in March on account of lock down effects and social distancing health protocols that have eroded aggregate demand impacting manufacturing pulse. Read more: The Business Telegraph
First quarter commercial banking profitability ebbed 45% lower to K233.6mn compared to a year ago and 27.0% from 4Q19 levels. this was attributed to widening of credit impairments as fiscal posture amplified by COVID risks and a rise in expenses eroded gains generated in the period. Read more: The Business Telegraph
Zambia’s budget performance for the first quarter of 2020 was better than anticipated given the projected negative impact of COVID-19 on both revenue collection and expenditure requirements. The Public Financial Management Consult says revenues, grants, and domestic financing totaled K18.1 billion and was above target by less than a percentage, with the majority of the tax instruments being above target except for VAT. Read more: Lusaka Times
First Quantum Minerals – FQM has cut its capital expenditure and reduced operating costs for 2020 as it braces itself for the impact of the COVID-19 on the mining sector. Read more: Zambian Business Times
About 400 jobs are at risk of being lost in Chililabombwe on the Copperbelt following Lubambe Copper Mine’s decision to terminate its contracts with two major service providers. Read more: Zambia Daily Mail
Government says a complete lockdown of the country’s businesses can cause more damage to the economy. Finance Minister Bwalya Ng’andu says business entities should turn their operations around and learn to adapt amidst the pandemic. Read more: ZNBC
International Business and Finance
Donald Trump is weighing up more aggressive economic measures against China amid rising anger over Beijing’s handling of the coronavirus pandemic, threatening the commercial truce reached less than four months ago. Read more: Financial Times
Most of JPMorgan Chase & Co.’s quarter-million employees have been working from home for more than a month. Some could be asked to keep doing so even after the coronavirus pandemic is over. Read more: Bloomberg
Uber has announced plans to cut 3,700 full-time staff – about 14% of its workforce – as business plunges following pandemic shutdowns. Chief executive Dara Khosrowshahi will also waive his base salary – set at $1m in 2019 – through to the year end. The announcements come a day ahead of the firm’s quarterly results. Read more: BBC News
South African private sector activity fell to a new record low in April, a business survey showed on Wednesday, as company closures due to a nationwide coronavirus lockdown led to a collapse in demand. Markit’s Purchasing Managers’ Index (PMI) tumbled to 35.1 in April from 44.5 in March, its lowest level since the survey began in 2011. Read more: Reuters
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In 25 trades recorded yesterday, 5,799 shares were transacted yielding a market turnover of K12,345. A share price loss of K0.01 was recorded in Copperbelt Energy Corporation. Trading activity was also recorded in AEL Zambia, Lafarge and Standard Chartered Zambia. The LuSE All Share Index (LASI) closed at 4,145.44 points, 0.09% down from its previous close of 4,149.17 points. The market closed on a capitalization of K56,862,470,987 including Shoprite Holdings and K22,623,265,007 excluding Shoprite Holdings.
Chart of the Day: