Story of the Day:
In the third week of February 2020, bonds of total face value of K99,736,000 were transacted in 25 trades, yielding a market value sales of K67,776,000. Monday was the best performing for the week, recording the highest Total face value of K57,161,000 and Market Value Sales of K39,032,570. Week three is the best performing week for February Corporate Bond trading on the LuSE with the highest recorded Total Face Value, Market value Sales and Number of Trades. Read more
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In the fifth treasury bill sale of the year held on 27 February, the Bank of Zambia (BOZ) was able to satisfy only K1.13billion of the K1.42billion appetite in nominal terms raising K927million ($63million equivalent) of the K950million assets on offer. Read more: The Business Telegraph
Zambia’s position in the world’s top 50 global mining countries has plummeted in the latest Fraser Index to 58, losing a massive 28 places from the country’s previous 30. The country’s placing in the Index, which measures how a country is seen as a mining investment destination, dropped to 58 largely due to heightened political instability, among several other reasons. Read more: News Diggers
Zambia’s exports have continued to register gains hitting a trade surplus of over K2.3 billion in January from K674.3 million in December last year. On the other hand, the annual inflation rate for February has increased to 13.9 percent from 12.5 percent in January. Read more: Lusaka Times
Over US$11 million was raised by Kagem Mining from the auction of predominantly commercial quality rough emeralds last week in Lusaka. The mining firm has in the last 10 years hosted 35 auctions of Kagem gemstones generating US$647 million in total revenue. Read more: Zambia Daily Mail
In the absence of a healthy United States dollar inflow, the Kwacha is likely to continue trading on the back foot against the greenback in the near term. On Wednesday, the local unit weakened due to a surge in dollar demand from some multinational companies and merchandise goods importers. Read more: Zambia Daily Mail
Russia is thoroughly analyzing Zambia’s request for help in financing the construction of a nuclear science and technology center in that country and expects to find a good solution, Federation Council Chairperson Valentina Matviyenko said while meeting with President Edgar Lungu. Read more: Interfax
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Lusaka Securities Exchange was established in 1993 and started business operation on February 21st 1994. Since then the Lusaka Securities Exchange has managed to diversify financial instruments on the market with equities, unit trusts, government and corporate bonds. Read more
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Stock markets across the globe are suffering their worst week since the global financial crisis of 2008. On Wall Street, the Dow Jones index fell almost 1,200 points yesterday – its biggest daily points-drop in history. Read more: BBC News
Goldman Sachs warned in a report Thursday that it now thinks US companies “will generate no earnings growth in 2020.” The bank said this forecast is based on “the likelihood that the impact of the virus becomes widespread.” Microsoft, Priceline owner Booking Holdings and Budwesier brewer Anheuser-Busch InBev were the latest blue chip firms to say that disruption due to the coronavirus will hurt their results. Apple did so last week. Read more: CNN
Britain has threatened to walk away from trade negotiations with the European Union if sufficient progress hasn’t been made by June, raising the stakes just days before the country begins crucial talks with its largest export market. Read more: The Guardian
Wells Fargo & Co. agreed to pay $35 million to settle regulatory claims that its financial advisers recommended exchange-traded funds that were too risky for some clients. The Securities and Exchange Commission’s investigation targeted Wells Fargo’s sale of inverse ETFs, a type of fund that moves in the opposite direction of an index it tracks. Read more: Market Watch
Investors have poured $2 billion so far this year into the biggest gold exchange-traded fund on the market, in a sign that the investing public is seeking a safe haven amid the recent equities market dive. Read more: Investment News
Dell Technologies on Thursday afternoon announced in-line results for the fiscal fourth quarter ended Jan. 31 and unveiled plans for a two-year, $1 billion stock-repurchase plan. For the quarter, Dell posted revenue of $24 billion, with non-GAAP profits of $2 a share. Read more: Barron’s
Capital Markets Report
In 2 trades recorded yesterday, 3,100 shares were transacted yielding a market turnover of K1,550. Trading activity was recorded in Zanaco. The LuSE All Share Index (LASI) maintained its close at 4,246.75 points, as there were no share price movements. The market closed on a capitalization of K57,303,524,174 including Shoprite Holdings and K23,064,318,194 excluding Shoprite Holdings.
Chart of the Day: