Story of the Day:
The month of October 2019 came to an end in what can only be described as evidence of the inverse relationship between the Zambian Corporate Bond and Equity markets with sales on the LuSE equity market-dominating for the first time in 2019 taking 64% of the total capital market sales during the month. Read more
Local Business and Finance
According to the recently published prudential financial statements for third quarter of 2019, after tax earnings grew by 38% to K1.38 billion with a profitability skew of 92.1% housed in seven commercial banks namely Stanbic (K322.2 million), Barclays (K199.3 million), Zanaco (K175.8 million), Bank of China (K154.6 million), Indo Zambia (K127.4 million) and Citibank (K111.7 million). Read more: The Business Telegraph
The Energy and Regulation Board (ERB) says the migration towards cost reflective tariff hikes of 113% in the energy sector is inevitable for ZESCO and the economy. ERB Board Chairperson Raymond Mpundu who officially opened the ERB public hearing on the ZESCO application to vary electricity tariffs, said the board targets to decide on ZESCO’s application within this month. Read more: ZNBC
The Zambian government has been urged to explore Chinese technology by encouraging Chinese commercial farmers to invest in the agricultural sector in the country, a non-governmental organization said on Tuesday. Read more: China.org
Zambia Revenue Authority (ZRA) Commissioner General Kingsley Chanda says the Authority is currently above target in raising revenue for the country. Read more: Lusaka Times
Arc Minerals Ltd, the Zambian-focussed copper exploration and development company, has received additional near surface, high grade copper assays from its maiden diamond drill exploration programme at the Cheyeza East target in Zambia. Read more: Proactive Investors
Mopani Copper Mines (MCM) has agreed to make changes to its newly introduced contract optimisation business model, which local suppliers and contractors rejected because it disadvantaged them in terms of doing business with the firm. Read more: Zambia Daily Mail
International Business and Finance
Boeing’s boss Dennis Muilenburg will not take a bonus this year following two crashes involving the firm’s 737 Max plane which killed 346 people. Boeing’s chairman David Calhoun said Mr Muilenburg had made the suggestion. Read more: BBC News
The starter’s gun has been fired on Aramco’s initial public offering, but problems that have dogged the oil giant over the past four years remain—not least, whether the company is actually worth what it says it is. Read more: Wall Street Journal
Compared with the first nine months of last year, trade data released Tuesday showed U.S. imports from China have fallen a sharp $53 billion. U.S. exports to China are down just $14.5 billion. Read more: CNBC
The World Bank could provide as much as $5 billion to Democratic Republic of Congo over the next five years if its new government commits to raising more revenue, fighting corruption and opening up its economy. Read more: Bloomberg
The worst may be over for the world economy’s deepest slowdown in a decade. A wave of interest rate cuts by central banks including the Federal Reserve and mounting hopes of a U.S.-China trade deal are buoying confidence in financial markets. Read more: Bloomberg
Capital Markets Report
In 21 trades recorded yesterday, 8,817 shares were transacted, resulting in a market turnover of K53,064. Trading activity was recorded in AEL Zambia, Copperbelt Energy Corporation, Standard Chartered Bank Limited, ZCCM and Zanaco. The LuSE All Share Index (LASI) closed at 4,317.68 points up by 0.11% from its previous close of 4,312.77 points. The market closed on a capitalization of K56,776,694,059 including Shoprite Holdings and K22,537,488,079 excluding Shoprite Holdings.
Chart of the Day: