Story of the Day:
In the first week of February 2021 bond trading on the LuSE, Week one is a complete replica of the first week of February 2020 bond trading as the equities market recorded a 100% to 0%. The equities’ market continue to record meagre scores as most of the companies continue to record negative earnings. Read more
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Zambia, which became Africa’s first pandemic-era sovereign default late last year, said on Friday it had officially requested to restructure its debt under a new common framework supported by the Group of 20 major economies. Read more: Reuters
A deterioration in Zambia’s fiscal posture leading to sovereign downgrade has not spared commercial banks in Africa’s second largest copper producer. Absa Zambia PLC FY20 earnings bore the brunt of high risk weightings in widened credit impairments whose stock totaled K249.3million, weighing its after tax profits (PAT) lower by 41.2% on an annual basis to K143.8million. Read more: The Business Telegraph
According to Markit Economics data released on February 03, revealed that Zambia’s January business pulse sagged 1.3 points to 47.7 (from 49.0 in December 2020) attributed to effects of the second COVID wave and currency depreciation. Read more: The Business Telegraph
The over US$300 million debt which Zesco owes Maamba Collieries Limited will be paid off by Government.
Minister of Energy Mathew Nkhuwa says Zesco has failed to settle the obligation because it spends colossal sums of money to buy power but sells it cheaply to Zambians. Read more: Zambia Daily Mail
International Business and Finance
The path has been cleared for Nigeria’s Ngozi Okonjo-Iweala to become the first woman and the first African to lead the World Trade Organization after South Korea’s candidate pulled out of the race for the job. Yoo Myung-hee, the South Korean trade minister, announced her decision to withdraw in a televised briefing on Friday. Read more: CNN
Apple is nearing a deal with Hyundai Motor Group to build a self-driving electric vehicle of its own, CNBC’s Phil LeBeau and Meghan Reeder reported Wednesday , citing multiple sources familiar with the project. If finalized, the EV would be Apple-branded and built at Kia’s assembly plant in West Point, Georgia, CNBC reported. Read more: Business Insider
Bitcoin is facing another crackdown from government authorities after Nigeria’s central bank banned any currency or coins not issued or regulated by the government, including bitcoin and a list of other cryptocurrencies. Read more: Business Insider
China’s market regulator released new anti-monopoly guidelines on Sunday that target internet platforms, tightening existing restrictions faced by the country’s tech giants. The new rules formalize an earlier anti-monopoly draft law released in November and clarify a series of monopolistic practices that regulators plan to crack down on. Read more: CNBC
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In 2 trades recorded on Friday, 2,700 shares were transacted yielding a market turnover of K1,899. Trading activity was recorded in Standard Chartered Zambia and Zanaco. The LuSE All Share Index (LASI) maintained its close at 3,904.59 points, as there were no share price movements. The market closed on a capitalization of K57,319,772,494 including Shoprite Holdings and K23,086,001,308 excluding Shoprite Holdings.
Chart of the Day: