Story of the Day:
Investrust Bank Plc has announced that it will be calling for an Emergency General Meeting (EGM) in Q2 2020 for the sole purpose of approving an approximately K400.40 million through a Rights Issue, according to a statement from the bank. Read more
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Vedanta Resources Ltd.’s Zambian unit, which is in provisional liquidation, is fighting to keep the lights on after a power company threatened to reduce supply because of a $132 million bill, according to court filings. Konkola Copper Mines Plc, Zambia’s biggest single power user, on May 13 won an interim order from the High Court preventing Copperbelt Energy Corp. from curbing its electricity. KCM disputes the payment that CEC is demanding. Read more: Bloomberg
Zambeef Products Plc says it has signed an agreement with Chisamba Ranching and Cropping Limited, a company its former joint-chief executive officer Francis Grogan holds a 50 per cent shareholding, to supply the former approximately 1,480 heads of cattle worth over K7.8 million for 2020. Read more: News Diggers
France is pushing the Group 20 (G20) countries to ensure Zambia is among the countries put on a debt relief programme, French Ambassador to Zambia Sylvain Berger has said. Read more: Zambia Daily Mail
Government has allowed the export of 83,000 metric tonnes of grain under the early maize programme, Minister of Agriculture Michael Katambo has said. Mr Katambo said the ban on maize exports is still in effect, but that the export of the 83,000 metric tonnes will be done under a special arrangement with commercial farmers. Read more: Zambia Daily Mail
International Business and Finance
The UN has warned that the economic downturn due to the pandemic could wipe out the gains of the last four years, at a cost of $8.5 trillion in economic activity. Its assessment of global prospects says that more than 30 million people are likely to fall into extreme poverty this year, mainly in Africa. Read more: ZNBC
The head of the World Trade Organization has said he will step down a year earlier than planned, at a crucial moment for the global economy. Roberto Azevedo’s surprise departure comes as the WTO faces the impact of the coronavirus pandemic and criticism from US President Donald Trump. Read more: BBC News
The New York Stock Exchange will reopen the trading floor to a subset of floor brokers the day after Memorial Day, May 26, according to the exchange’s president Stacey Cunningham. Read more: CNN
The South Africa Reserve Bank is expected to cut interest rates by 50 basis points on May 21 to a record low of 3.75% to ease the pain of the country’s recession, as this quarter shows signs of a steep downturn due to limited economic activity. Read more: Reuters
The airline industry is not likely to recover to pre-coronavirus levels for at least the next six to 12 months, Southwest Airlines Co Chief Executive Officer Gary Kelly said on Thursday. Read more: Reuters
Donald Trump has warned that he could “cut off the whole relationship” with China, in the latest escalation of US tensions with Beijing as he increasingly blames China for the global spread of the coronavirus. “There are many things we could do,” Mr Trump told Fox Business’ Mornings With Maria on Thursday. “We could cut off the whole relationship. Now if you did, what would happen? You’d save $500bn.” Read more: Financial Times
Capital Markets Report
In 26 trades recorded yesterday, 123,459 shares were transacted yielding a market turnover of K725,871. Trading activity was recorded in Airtel, Copperbelt Energy Corporation, Zambia Breweries, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 4,090.33 points, as there were no share price movements. The market closed on a capitalization of K56,624,199,184 including Shoprite Holdings and K22,384,993,204 excluding Shoprite Holdings.
Chart of the Day: