Story of the Day:
In the final week of February 2020 trading on the LuSE, six companies’ securities recorded trades. Only four days recorded trades during the week, of which Monday was the best performing for the week. The final week of February 2020 trading on the LuSE was quite similar to January is final week. Read more
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As currency market risk on mood persist in emerging and frontier space, the Kwacha is expected to extend its losing streak trading north of 15.5 for a dollar unit. Driving this will be pockets of disinvestment risk taking a cue from global risk sentiment and the skew towards safer bets as coronavirus infects financial markets. Read more: The Business Telegraph
Zambia’s African Green Resources (AGR) on Sunday launched an $81 million financing programme under which the company and its partners will provide farm supplies and technology to farmers in exchange for grain. Read more: Reuters
Government has signed a Memorandum of Understanding with Angola, for the implementation of Electricity power Interconnector between the two countries.
Minister of Energy Matthew Nkhuwa says the power interconnector will facilitate electricity trade between the two countries, and the region. Read more: ZNBC
The Federation of Small and Medium-sized Business Association of Germany says it has noted an increased interest in direct investments in Zambia following the Embassy’s participation in the recently held economic forum. Read more: Lusaka Times
Digital Shared Services Limited (DSSL) has invested about US$1 million in a financial technology (fintech) platform that seeks to promote interoperability between banks, mobile money and other digital financial service providers. DSSL chief executive officer Charity Mwanza said the launch of Digital PayGo speaks of Zambia’s aspiration of achieving a digitally driven economy. Read more: Zambia Daily Mail
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The introduction of Mobile Money Services by various mobile money service providers to customers has become a way of gaining competitive advantage through diversification, maintaining customer loyalty and increasing the market share in order to grow their profitability and improve their financial position. Read more
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The Federal Reserve is likely to join other global central banks in cutting interest rates aggressively in response to the coronavirus scare, Goldman Sachs economists said Sunday. With fears over a global slowdown intensifying, the Fed likely will announce a 50 basis point cut at its March meeting, if not sooner, the firm said. Read more: CNBC
OPEC could agree on deeper oil supply cuts this week, with or without Russia’s support, to halt the slide in crude prices triggered by the global spread of the coronavirus, said two sources familiar with the talks. Read more: The Moscow Times
Boris Johnson has promised to “drive a hard bargain” as he set out the UK’s negotiating position for a post-Brexit free trade deal with the US. The government said a deal would boost the UK economy by £3.4bn and particularly benefit Scotland, England’s north-east and the Midlands. Read more: BBC News
Share prices in Asia have reversed early losses after Japan’s central bank promised to support markets. On Friday the US Federal Reserve made a similar pledge to intervene to stop further big falls on the world’s financial markets. Read more: BBC News
Manufacturing activity in China slowed at a record pace in February, exceeding its collapse during the global financial crisis of 2008, according to one of the first official economic indicators published since the coronavirus outbreak. Read more: Financial Times
U.S. stock market futures rallied from steep initial losses late Sunday, suggesting a pause to the selloff when trading begins Monday, following the worst week on Wall Street since 2008. Read more: Market Watch
Investors who sought refuge from equities by buying gold were likely disappointed Friday, when prices of the precious metal plummeted along with the stock market. Read more: Investment News
Capital Markets Report
In 6 trades recorded on Friday, 982 shares were transacted yielding a market turnover of K2010. A share price gain of K0.01 was recorded in Copperbelt Energy Corporation. Trading activity was also recorded in Real Estate Investments Limited. The LuSE All Share Index (LASI) closed at 4,250.48 points, 0.09% up from its previous close of 4,246.75 points. The market closed on a capitalization of K57,319,774,180 including Shoprite Holdings and K23,080,568,200 excluding Shoprite Holdings.
Chart of the Day: