Good morning. Here’s what you need to know
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Lusaka Stock Exchange Roars: PAMODZI Leads Value Creation in First Half of 2024
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Zambia’s external debt hits $14.7 billion, as copper production increases by 6.2%
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Ethiopia’s securities exchange to go live in October
In Local Business and Finance News
The Lusaka Securities Exchange (LuSE) has kicked off the first half of 2024 with a roar, as several stocks post remarkable gains. The surprise performer, PAMODZI, had its share price rise from K0.71 to K4.62 since January, leaving investors and analyst in disbelief at the magnificent 550% capital gain posting by the security. Apparently, the most share gain was realised in the second quarter, emanating from ASB’s mandatory offer to the minority shareholders of Pamodzi, who held a 10% stake. The offer, which opened on 22 April 2024, allowed ASB to purchase minority ordinary shares at K4.62 each. As the majority shareholder with a 90% stake, ASB acquired an additional 9.12% of the minority shares, increasing its total stake to 99.12% as shown in the “PAMODZI shareholding before and after mandatory offer” table. The share price subsequently rose to K4.62. Read more on Financial Insight
Jubilee Metals Group has proudly commenced operations at their Roan Upgrade project in Zambia, enhancing their copper production capacity. The upgrade includes a new front-end section that works in conjunction with existing milling and flotation circuits, raising Roan’s output to 13,000 tonnes of copper annually. This expansion is part of Jubilee’s broader strategy to increase their processing capacity to 25,000 tonnes per year, leveraging their unique processing capabilities to target various copper-rich materials within Zambia. Read more: Tip Ranks
Zambia’s external debt portfolio has risen, while copper production increased by 6.2 percent to 346,747 tonnes, according to the latest economic review by the Ministry of Finance and National Planning. Permanent Secretary for Economic Management and Finance, Danies Chisenda, reported during the Second National Development Coordinating Committee Meeting of 2024 that external debt increased to $14.7 billion from $14.6 billion at the end of December 2023. Chisenda attributed this increase to disbursements mainly from multilateral creditors. “Of the projected US$914 million in external loans for the year, US$158.5 million has been disbursed. Guaranteed external debt stands at $1.39 billion, down from $1.41 billion at the end of December 2023,” Chisenda stated. The reduction is due to partial debt service payments made by some guaranteed institutions. Chisenda acknowledged a significant downgrade in domestic real GDP growth to 2.3 percent from 4.7 percent, primarily due to drought impacting the agriculture and energy sectors. Read more: Zambia Monitor
The governments of Zambia and India have convened to evaluate their bilateral relations and address unresolved issues. Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation, Etambuyu Gundersen, stated that the discussions focused on areas of mutual interest during the fourth session of the foreign office consultation meeting between Zambia’s Ministry of Foreign Affairs and International Cooperation and India’s Ministry of External Affairs. Gundersen highlighted that the discussions covered political relations, trade and investment, development cooperation, and regional and multilateral cooperation. “We will also finalise some Memorandum of Understanding (MoU) and agreements in various areas such as health, trade, education, infrastructure, mining and agriculture,” she stated. Read more: Zambia Monitor
In International News
US stocks had their best trading day since November 2022, after a suprise drop in unemployment claims helped ease concerns about a slowing economy. The benchmark S&P 500 index ended the day 2.3% higher. The Dow Jones Industrial Average rose 1.8%, and the Nasdaq jumped 2.9%. Stocks in Asia made modest gains, recovering some of the losses from earlier in the week. Both Hong Kong’s Hang Seng Index and South Korea’s Kospi rose by more than 1%. In Japan, stocks on the Nikkei 225 and the Topix were mostly flat. It comes after Japanese stocks had their worst day since 1987 earlier in the week, sparking a major global market rout. Read more: BBC News
In line with ongoing efforts to become an open economy, Ethiopia’s securities exchange is expected to begin operations in October, according to its chief executive. Ethiopia’s securities exchange is expected to begin operations in October, according to its chief executive, as reported by state-affiliated media on Thursday. Despite being East Africa’s largest economy, with a GDP of around $205 billion according to the IMF, Ethiopia has lacked a stock exchange. Since taking office in 2018, Ethiopian Prime Minister Abiy Ahmed has launched an initiative to open up the country, which has historically been under tight state control, to greater private investment. The government is actively seeking private investors to purchase up to 75% of the ESX’s shares. Ethiopian Investment Holdings, the state-controlled sovereign wealth fund, along with its subsidiaries, will retain the remaining 25% shareholding. In April, the Nigerian Exchange (NGX) Group plc announced a significant investment in the Ethiopian Securities Exchange (ESX). Read more: Business Insider
Ghana, Africa’s leading gold producer, has launched its first gold refinery to capture more value from its abundant natural resources. Ghana, Africa’s leading gold producer, has launched its first gold refinery to capture more value from its abundant natural resources. The Royal Ghana Gold Refinery is set to process 400 kilograms of gold daily, primarily sourcing raw materials from artisanal and small-scale mines, which contribute about one-third of Ghana’s annual output of about 4 million ounces, Bloomberg reported. According to the Bank of Ghana Governor Ernest Addison, “This refinery will play an important role in reducing gold smuggling which has been a major challenge for the country over the years by providing a ready market for artisanal and small-scale miners,” Read more: Business Insider
China’s consumer prices rose by a more-than-expected 0.5% in July from a year ago, boosted by a surge in pork prices, according to data from the National Bureau of Statistics released Friday. Analysts polled by Reuters had expected a slight pickup in the consumer price index to 0.3% in July from a year ago, versus 0.2% in June. The 0.5% CPI increase in July was the highest since a 0.7% rise in February, according to official data accessed via Wind Information. China’s biggest holiday of the year, the Lunar New Year, fell in February this year. Prices of pork, a widely consumed food staple in China, surged by 20.4% year-on-year in July. That was the biggest increase since December 2022, according to Wind. Pork prices play a significant role in China’s consumer price index, but can be prone to large swings due to disease or other factors affecting production. Read more: CNBC
Finally, Capital Markets News
In 90 trades recorded yesterday, 20,318 shares were transacted resulting in a turnover of K477,004.88. The following price changes were recorded yesterday: -K2.02 Airtel, +K0.08 in PUMA, +K0.35 in Standard Chartered Bank Limited and +K0.02 in Zambeef. Trading activity was also recorded in Airtel, CEC Zambia, Real Estate Investments Zambia, ZAMEFA, ZANACO and Zambia Sugar. The LuSE All Share Index (LASI) closed at 14,463.07 points, 0.92% higher than its previous day close at 14,331.53 points. The market closed on a capitalization of K118,487,839,665.48 including Shoprite Holdings and K75,009,482,865.48 excluding Shoprite Holdings.
7 Govt Bond trades with total quantity K68,257,000 and turnover K55,218,020 were processed yesterday.
