Story of the Day:
In the first week of March 2020, bonds of a total face value of K487,260,000 were transacted in 13 trades, yielding a market value sales of K242,792,000. Only four days recorded trades during the week of which Wednesdays’ bond trading was the best performing for the week. Week one of March outperformed February’s first week which open its market with bonds total face value K10,502,000 transacted in 9 trades, yielding a market value sales of K6,788,000 in which only 3 days recorded trades. Read more
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ZCCM Investment Holdings PLC says positive results have been obtained from preliminary mineral exploration activities in the Kasenseli area in Mwinilunga District. ZCCM-IH Chief Executive Officer, Mabvuto Chipata says the Company is in the process of obtaining necessary Statutory approvals before it proceeds to detailed exploration to delineate the resource and subsequently mine development. Read more: ZNBC
Zambian international bonds maturing 2022 last paid 42.8496% while the 2024 and 2027 were last roll priced at 35.7847% and 25.9727% respectively. This is the highest Eurobonds for emerging markets have ever peaked. Zambia’s dollar bonds are now priced close to local currency paper which ranges between 30.95% for the 10 year to 33% for the 5 year tenor. Read more: The Business Telegraph
Despite a gyration of economic tides on the African continent, the Absa Group FY19 earnings reflect resilience in earnings and growth impetus across the entire franchise. Absa delivered a solid performance with 17% bullish growth in profitability, a 14% rally in total revenues and a decline in cost to income ratio. Read more: The Business Telegraph
Zambia Institute for Policy Analysis and Research (ZIPAR) research fellow Caesar Cheelo says the Kwacha is likely to depreciate further due to Zambia’s poor economic structure. According to the Bank of Zambia as at midday, Wednesday, the Kwacha was buying at 15.47 to one dollar and selling at 15.78 to a dollar. Read more: News Diggers
Zambia is one of the ten least attractive jurisdictions in the world for mining investment, according to the Annual Survey of Mining Companies recently released by the Fraser Institute, an independent think-tank, and the global benchmark for investors’ perceptions. The annual survey is said to be closely watched by companies, minerals councils and mining chambers, as well as minerals and mining ministries, which typically use the results as a measure of their efficacy in attracting investment. Read more: News Diggers
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The story of many Zambians in the formal sector with well-paying jobs who end up becoming destitute after their flourishing careers is not one which is unusual. A good number of citizens who had high earning jobs in their working days tend to find themselves struggling to make ends meet after their career comes to an end through retirement. Read more
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US stocks fell almost 10 per cent in their worst day since the 1987 crash despite emergency actions by the Federal Reserve and the European Central Bank to mute the financial and economic damage from the coronavirus. Read more: Financial Times
European Central Bank President Christine Lagarde unveiled a calibrated package of stimulus, spearheading the region’s financial response to the coronavirus with measures intended to “surgically” support key parts of the economy. Read more: Bloomberg
The New York Federal Reserve is taking out the big guns to calm panicky financial markets. The NY Fed announced plans Thursday to inject vast amounts of money into the financial system, totaling at least $1.5 trillion. Read more: CNN
The five biggest tech firms, Amazon, Apple, Alphabet, Facebook and Microsoft, lost a combined $416.63 billion in value as the markets continued to crater on coronavirus fears and economic uncertainty. Shares of Apple plunged 9.88%, Facebook fell 9.30%, Alphabet dropped 8.2%, Amazon fell 7.98% and Microsoft dropped 9.48%. Read more: CNBC
Cryptocurrencies took a battering following a global sell-off in stocks, with bitcoin seeing a near 40% plunge. The market capitalization, or total value of the entire cryptocurrency market plummeted around $93.5 billion in the space of 24 hours. Read more: CNBC
The shortage of Treasury bills is about to get a whole lot worse. All along, Wall Street has been bracing for a record decline in second-quarter net issuance as the Treasury cuts supply in response to tax season and the Federal Reserve buys bills to boost reserves. But now, supply is set to get squeezed even more as the COVID-19 scare causes demand for Treasuries to soar. Read more: Investment News
Uganda’s gold exports more than doubled in 2019 compared with the previous year, according to data from the central bank seen by Reuters on Wednesday. The east African country shipped $1.25 billion worth of gold last year, compared with $514.8 million exported in the previous 12 months. Read more: Reuters
The confidence of South Africa’s struggling business sector plunged to its lowest in 21 years in the first quarter of 2020, as companies battled challenges ranging from power outages to a falling rand, the coronavirus, continued state-owned enterprise (SEO) bailouts and cash-strapped consumers. Read more: The South African
Capital Markets Report
In 24 trades recorded on Wednesday, 23,172 shares were transacted yielding a market turnover of K25,238. A share price gain of K0.01 was recorded in Copperbelt Energy Corporation. Share price losses of K0.48 in AEL Zambia, K0.03 in Standard Chartered Bank Zambia and K0.10 in Zambeef were recorded as well. Trading activity was also recorded in Lafarge and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,243.65 points 0.40% down from its previous close of 4,260.56 points. The market closed on a capitalization of K57,290,027,573 including Shoprite Holdings and K23,050,821,593 excluding Shoprite Holdings
Chart of the Day: