Good afternoon. Here’s what you need to know
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Lusaka Stock Exchange reportedly records historical K1 billion market capitalisation
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Access announces completion of merger with Atlas Mara
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China’s president arrives in Europe to reinvigorate ties at a time of global tensions
In Local Business and Finance News
Zambia’s currency weakened against the dollar for an 18th successive day, cementing its position as the worst performer in emerging markets since March, as a severe drought added to constraints in copper production. The kwacha on Friday extended its losses since April 8 to 8.4% and traded close to record lows of around 27 per dollar. That’s the worst decline among 32 most widely traded EM currencies and followed previous slumps in February and March. Read more: Bloomberg
The Lusaka Securities Exchange (LuSE) has reportedly recorded a historical K100 billion barrier market capitalisation as at the close of the month of April, 2024. Year to date all share index has also reportedly gone up by 18.7 percent. This is according to Nicholas Kabaso, the LuSE Chief Executive Officer, in a statement issued on Friday. Kabaso, on the market capitalization, noted that this development indicated a record high in the history of the LuSE. He also said the month of April recorded a total of 2,897 equity trades with a quantity of more than four million shares. According to Kabaso, this resulted in a market turnover of over K36 million compared to K16 million in the previous month. “The Lusaka Securities All Share Index (LASI) remained bullish closing the month of April on a year-to-date growth of 18.7 percent attributed to capital gains across most of the counters on the market,” he said in a statement. On the bond market, Kabaso stated that April recorded a total of 306 bond trades compared to 254 in the month of March. This represented an increase of 20.5 percent. Read more: Zambia Monitor
Access Bank has legally completed the merger with Atlas Mara, as it assumes all rights and obligations of Atlas Mara. This development which took effect on April 30, 2024 follows completion of its acquisition earlier this year. Access Bank Zambia Chief Executive Officer, Lishala Situmbeko, in his comment on the merger, explained that while the legal combination had been achieved, cards, cheque books and digital platforms for both banks would remain accessible for at least a year. Situmbeko committed the bank to continue playing a central role in the country’s future through enhancing financial inclusion and empowering corporates, Small and Medium Enterprises (SMEs), women and the youth through its programme and proposition. He said this in a statement on Saturday. “I look forward to what the future holds and how, as a business, we can make a positive contribution to Zambia’s development. Our areas of focus are aligned to those of Zambia and the continent of Africa. “Through our subsidiary network, Access Bank will evolve into a leader in international trade facilitation within the continent, providing seamless person to person intra-Africa funds transfer and inter-Africa trade facilitation,” he said. Read more: Zambia Monitor
The United States government through the U.S. Agency for International Development’s (USAID) American Schools and Hospitals Abroad (ASHA) program, has committed $1.16 million (approximately K31 million) to support an expansion of a Model Library for Youth and a Center for Training and Administration to train Zambians in library science and provide professionally-guided library services for young people. The Lubuto Model Library is equipped with a reading room, early childhood education center, technology hub, and teen center in addition to the training and administration building. USAID, through the ASHA program, has supported infrastructure development for four libraries in Zambia in partnership with Lubuto Library Partners, a U.S.-based organization that promotes equitable education and poverty reduction in Zambia. Lubuto libraries serve as safe havens for all children and include collections of high-quality children’s books, technology resources, programming offering education and psychosocial support, and outreach that ensures inclusion of all young people. Read more: US Embassy
Turkey’s YEO is partnering with Zambian sustainable energy company GEI Power to develop a 60 MW/20 MWh solar plant with battery storage in Choma district, southern Zambia. The facility has been touted as Zambia’s first solar plant with battery storage. Valued at approximately $65 million, it is scheduled to reach commercial operations in September 2025 and serve at least 65,000 households with electricity. GEI Power Managing Director Ignatius Anayawa said that feasibility studies, environmental impact assessment and grid impact studies have been conducted. Zambian Ministry of Energy Permanent Secretary Francesca Chisangano Zyambo has urged the two parties to move quickly to commission the project, as the facility will be important for mitigating power shortages in the country. “We also want to tap into the engineering and battery storage innovation expertises from Turkey and set up an assembly plant in the country” she said. Read more: PV Magazine
In International News
Chinese President Xi Jinping kicked off a three-country trip to Europe on Sunday with the continent divided over how to deal with Beijing’s growing power and the U.S.-China rivalry. European carmakers are losing ground to subsidized Chinese electric vehicles. Diplomats fret about alleged Chinese spies in European capitals. And China’s continued defense trade with Russia worries anyone in Europe who supports war-ravaged Ukraine and fears that the Russian army won’t stop there. But Europe and China have hefty economic ties — EU-China trade is estimated at 2.3 billion euros per day — and Xi appears determined to rebuild and deepen relations with European leaders after a prolonged absence prompted by the Covid-19 pandemic. Xi starts Sunday in France, whose president wants Europe to have more economic and strategic independence from other world powers. Then the Chinese president heads to Serbia and Hungary, both seen as China-friendly and close to Russian President Vladimir Putin, and recipients of substantial Chinese investment. Read more: CNBC
Euro zone business activity expanded at its fastest pace in almost a year last month as a resurgence in the bloc’s dominant services industry more than offset a deeper downturn in manufacturing, a survey showed on Monday. HCOB’s composite Purchasing Managers’ Index (PMI) for the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, bounced to 51.7 in April from March’s 50.3, surpassing a preliminary 51.4 estimate. That was its second month above the 50 mark separating growth from contraction and the highest since May last year. The services PMI leapt to 53.3 from 51.5, above the flash estimate of 52.9 and its highest reading since last May. Read more: CNBC
Google and the U.S. Justice Department wrapped up closing arguments on Friday over claims that the Alphabet unit has unlawfully dominated web search and related advertising, in a case the government contends could shape the “future of the internet.” U.S. District Judge Amit Mehta in Washington for hours grilled both sides with questions, probing whether competitive platforms such as ByteDance’s TikTok and Meta’s Facebook and Instagram are competitive substitutes for search advertising dollars. Mehta said a central issue was platform “substitute-ability” for advertisers, which the court must resolve. He will now begin preparing to render a major decision on whether Google’s conduct broke civil antitrust law. He did not indicate when he would rule, but experts say he could potentially order changes to Google’s business practices. Mehta also questioned whether Google assesses competitors’ pricing before making its own adjustments. Google’s advertising business is responsible for about three quarters of its revenue. Read more: Reuters
Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region. Brent crude futures gained 73 cents, or 0.9%, to $83.69 a barrel at 0852 GMT, while U.S. West Texas Intermediate crude futures were at $78.95 a barrel, up 84 cents, or 1.1%. Last week, both futures contracts posted their steepest weekly loss in three months with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible timing of a Federal Reserve interest rate cut. The geopolitical risk premium in oil prices also eased as talks for a Gaza ceasefire were underway. However, prospects for a deal narrowed as Hamas reiterated its demand for an end to the war in exchange for the freeing of hostages and Israel appeared poised to launch a long-threatened assault in the Southern Gaza Strip. Read more: Reuters
Finally, Capital Markets News
In 303 trades recorded on Friday, shares 121,350 were transacted resulting in a turnover of K521,151.87. The following share price changes were recorded on Friday: -K0.45 in Standard Chartered Bank Limited ,+K0.12 in British American Tobacco Zambia, -K0.01 in PUMA, and +K0.01 in Zambia Breweries. Trading activity was recorded in Airtel, CEC Zambia, Chilanga Cement, National Breweries, Real Estate Investments Zambia, ZANACO, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 12,689.34 points, 1.26% lower than its previous day close at 12,850.78 points. The market closed on a capitalization of K99,393,284,705.37 including Shoprite Holdings and 64,610,599,265.37 excluding Shoprite Holdings.
A total number of 7 Govt Bond trades with a total face value of 4,249,000 and turnover of 2,827,980 were processed on Friday.