Story of the Day:
So far, 2020 has been undeniably challenging for the mining and metals industry. The COVID-19 global pandemic has routed markets and dented investor confidence around the world. Until now, gold as a safe-harbour asset, has been one of the rare gainers in metals markets – but is it about to be joined by copper? Read more
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Zambia has asked the Paris Club of creditor nations to let it suspend principal and interest payments on debts to all its official creditors from May to the end of December, the Finance Ministry said on Sunday. Read more: Reuters
The governments of Zambia and Zimbabwe with support from the Comesa Secretariat are planning a joint industrialisation programme, which will build on the experiences and lessons learned from the existing joint ventures. Read more: The Chronicle
ZCCM-IH has denied reports that it has sold off Ndola Lime Company. In a statement, ZCCM-IH Spokesperson Loisa Mbatha clarified that Ndola Lime Company has ceased to exist due to huge debts and that a new company known as Limestone Resources Limited has been created. Read more: Lusaka Times
The World Bank has agreed to extend budget support to Zambia once the country gets on a programme with the International Monetary Fund. Read more: ZNBC
The Rural Electrification Authority (REA) has resumed the construction of the K7.4million power grid project that had stalled for over a year in Lupososhi district – Northern Province. REA CEO Clement Silavwe says the works which are expected to be completed by end of November this year are currently at 55%. Read more: ZNBC
International Business and Finance
Bank of England governor Andrew Bailey has said he will be “ready to take action” to help the UK economy weather the coronavirus crisis. He was speaking after figures showed that the country’s economy shrank by 20.4% in April – the largest monthly contraction on record – as the country spent its first full month in lockdown. Read more: BBC News
China’s second-biggest airline is to launch a new carrier despite a severe global downturn in passengers caused by the coronavirus pandemic. Read more: BBC News
US stock futures fell sharply overnight, indicating global stocks may be headed for another volatile week as investors grapple with the ongoing effects of the coronavirus pandemic. Dow futures dropped 600 points, or 2.4%. S&P 500 futures fell 2%, and Nasdaq futures were down 1.4%. Read more: CNN
Oil giant BP said it will take up to $17.5 billion in impairments and write-downs in the second quarter, after reviewing its plans to become net-zero in carbon emissions by 2050 and on COVID-19 having an enduring impact on the global economy. Read more: Market Watch
The African Development Bank (AfDB) has announced that Dr. Jennifer Blanke, Vice President for Agriculture, Human and Social Development, will be leaving the Bank effective on July 4, 2020. Read more: Business Insider
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In 39 trades recorded on Friday, 14,335 shares were transacted yielding a market turnover of K31,658. Share price losses were recorded in CEC of K0.09, Lafarge of K0.10 and Standard Chartered Zambia of K0.01. Trading activity was also recorded in AEL Zambia, Zambia Breweries, Zambeef and Zambia Sugar. The LuSE All Share Index (LASI) closed at 3,971.11 points, 1.06% down from its previous close of 4,013.14 points. The market closed on a capitalization of K56,105,319,918 including Shoprite Holdings and K21,866,113,938 excluding Shoprite Holdings.
Chart of the Day: