Story of the Day:
In a move that many economists and financial watchers were anticipating, the Central Bank announced a 150 basis points (1.5%) increase in the policy rate on Wednesday 20th November moving the policy rate to 11.5%, following a disturbing run of accelerating inflation and weakening currency. Read more
Local Business and Finance
The African Development Bank (AfDB) and Green Climate Fund (GCF) have formalised their support to a plan to deploy 100MW of green energy in Zambia. Under the so-called Zambia Renewable Energy Financing Framework, set to run for five years, the two institutions will provide US$154 million to support the government as it enacts a feed-in tariff scheme for green energy ventures in the country. Read more: PV Tech
German Ambassador to Zambia Achim Burkart says the high risk of debt distress and absence of an International Monetary Fund (IMF) program has limited cooperating partners from helping Zambia. Read more: News Diggers
Energy Minister Mathew Nkhuwa has disclosed that state owned power utility ZESCO recorded K2.8 billion losses in the 2018 financial year. Read more: Lusaka Times
With a lean market position of K525 million into the twenty fourth treasury bill sale of the year, Bank of Zambia was able to raise proceeds translating to the full amount of asset on offer plus additional 20% of their quota. Read more: The Business Telegraph
“There is an urgent need for Government and various stakeholders to critically reflect and figure out what the country can do differently to prevent its economic growth from slumping to below two percent by the end of this year,” Bank of Zambia Governor Denny Kalyalya has said. Read more: Zambia Daily Mail
Minister of Agriculture Michael Katambo says government is owing seed companies K56,355,627.64 due to budgetary constraints the ministry faced in programme implementation. Read more: Zambian Business Times
International Business and Finance
The Organisation for Economic Cooperation and Development (OECD) has warned that risks to the global outlook have increased. The OECD forecasts continued growth of around 3% but warns that a lack of direction on climate policy is holding back business investment. BBC News
Britain’s government borrowing in October rose to its highest level in five years, official data shows. The Office for National Statistics (ONS) said borrowing last month hit £11.2bn, £2.3bn more than last year and it is likely to rise again after the election. Read more: BBC News
WeWork said Thursday it is laying off about 2,400 employees globally as part of a broader effort to cut costs and find a viable path forward after a disastrous IPO attempt. Read more: CNN
UBS is predicting a decade of low returns and higher volatility for most financial assets. In a report published Thursday, the Swiss bank set out a vision for 2030 which included working-age populations in developed countries shrinking by 25 million, increasing deglobalization and a “less favorable political backdrop” for high-income individuals. Read more: CNBC
The Securities and Exchange Commission could issue over the next several months proposals to open private securities markets to more ordinary investors. Read more: Investment News
Marble-mining company ArtGo was the world’s best-performing stock of 2019, through Nov. 20, for firms with market values greater than $1 billion. But its shares tanked 98% in a single morning on Thursday, wiping out more than $5.7 billion in market value before trading was suspended. Read more: Business Insider
Capital Markets Report
In 2 trades recorded yesterday, 89 shares were transacted, resulting in a market turnover of K704.There were no changes in share price. Trading activity was recorded in Zambia Breweries. The LuSE All Share Index (LASI) maintained its previous close at 4,259.50 points. The market closed on a capitalization of K56,534,726,027 including Shoprite Holdings and K22,295,520,047 excluding Shoprite Holdings.
Chart of the Day: