Story of the Day:
The phasing out of the London Interbank Offered Rate (LIBOR) at the end of 2021 and its replacement with Alternative Risk-Free rates (ARRs) will have far reaching consequences for financial institutions and borrowers. LIBOR is currently the benchmark reference rate for over $350 trillion financial contracts worldwide. Read more
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Zambia has increased the price of fuel after removing subsidies on petroleum products to reflect the correct price of the commodity, the energy regulator said on Thursday. The pump price of petrol was increased to 21.16 kwacha ($1.29) per litre from 17.62 per litre while diesel price rose to 20.15 kwacha per litre from 15.59 per litre, the Energy Regulation Board said in a statement. Read more: Reuters
The Millennium Challenge Corporation’s (MCC) has selected Zambia and Belize as eligible countries to develop the corporation’s five-year grant program. MCC Acting Chief Executive Officer Mahmoud Bah says the decision was arrived at after the agency’s Board of Directors quarterly meetings. He says the two countries have demonstrated a clear commitment to democratic governance, investing in people, and pursuing economic freedom. Read more: ZNBC
Low supply of the United States (US) dollars has continued putting pressure on the Kwacha, which has depreciated to trade above K16.00 per dollar from the level of K15.00 recorded last Thursday. In its daily treasury newsletter, Absa Bank Zambia Plc states that the local currency traded on the back foot against the US dollar on Tuesday, mainly due to sustained demand from large corporates with very little supply seen to help reduce the pressure on the Kwacha. Read more: Zambia Daily Mail
International Business and Finance
Airtel Africa Plc announced earlier today that Abu Dhabi-based private investment firm, Chimera Investment LLC, has bought $50 million worth of minority shares in its mobile money venture —Airtel Mobile Commerce BV (‘AMC BV’). Read more: Business Insider
The Bank of England has raised interest rates for the first time in more than three years, in response to calls to tackle surging price rises. The increase to 0.25% from 0.1% followed data this week that showed prices climbing at the fastest pace for 10 years. It came despite fears the Omicron variant could slow the economy by causing people to spend less. Read more: BBC News
The UK has signed a free trade deal with Australia which it says will benefit consumers and businesses. It is described as the first post-Brexit deal negotiated from scratch and not “rolled over” from trade terms that the UK enjoyed while in the EU. The government estimated it would unlock £10.4bn of additional trade while ending tariffs on all UK exports. Read more: BBC News
U.S. stock futures were in negative territory early Friday morning as investors digested a trading day in which tech names struggled and dragged the rest of the market down with them. Futures on the Dow Jones Industrial Average were down 38 points, or 0.11%. S&P 500 futures fell 0.26% and Nasdaq 100 futures were down 0.43%. Read more: CNBC
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In 95 trades recorded yesterday, 48,305 shares were transacted resulting in a turnover of K75,359.66. Trading activity was recorded in Copperbelt Energy Corporation, CEC Africa, Puma, Real Estate Investments Zambia, Standard Chartered Zambia, Zambia Breweries, ZAMEFA, Zambia Sugar, and Zanaco.The LuSE All Share Index (LASI) closed at 5,828.85 with a percentage change of 3.07.
Chart of the Day:
