Story of the Day:
The in turnaround Cavmont Capital Holdings Zambia Plc has record better top half performance for the last six months of its current financial year compared to the previous one, according to a statement from the company. Read more
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The Zambia Revenue Authority – ZRA has exceeded its first quarter (January to March) target for 2020 by collecting K63.7 million above target. The Target for the first quarter was K13.1 billion and the Authority collected a surplus of K63.7 million. Read more: Zambian Business Times
Energy Minster Mathew Nkhuwa says power supply on the Copperbelt will not be interrupted despite Zesco Limited’s failure to reach an agreement with Copperbelt Energy Corporation (CEC) Plc to extend the Bulk Supply Agreement (BSA) following its expiry, Tuesday. Read more: News Diggers
Mining companies in Zambia face the prospect of being put under care and maintenance amidst the escalating high-cost of operations, combined with continued uncertainty, triggered by declining copper prices, says the Zambia Chamber of Mines. Read more: News Diggers
EDCON Limited, the owner of Jets and Edgars clothing stores, has applied for voluntary liquidation because the two shops are not making profit in Zambia. Read more: Zambia Daily Mail
Standard Chartered has announced it will commit US$1 billion of financing for companies that provide goods and services to help the fight against Covid-19, and those planning the switch into making products that are in high demand to fight the global pandemic. Read more: Lusaka Times
The Zambia Chamber of Commerce and Industry (ZACCI) has advised government to consider supporting import substitution measures by giving markets the priority to buy and sell locally produced goods in the wake of lockdowns in neighbouring countries due to COVID-19. Read more: ZNBC
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African finance ministers want IMF, World Bank and EU support for bilateral, multilateral and commercial debt relief amid the coronavirus crisis, the UN Economic Commission for Africa (UNECA) said. Following Tuesday’s meeting, they said the continent’s development partners should consider debt relief and interest rate forbearance over a two to three-year period for all African low to medium income countries. Read more: Reuters
The global economy could shrink almost 1% this year due to the new coronavirus, a sharp reversal from the pre-pandemic forecast of 2.5% growth, the United Nations said Wednesday. Read more: Market Watch
Demand for air travel will not return to normal until mid-2021 at the earliest, under a best-case scenario outlined by an analyst at Stifel. Under the worst-case scenario for the airline industry, more stringent travel restrictions and quarantines, coupled with a resurgence of COVID-19 in the fall after a slump in the summer, will lead to lower demand for a longer period of time. Read more: Business Insider
Global oil prices have risen after Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their price war. US oil has just seen its worst quarter on record, falling by two thirds in the first three months of the year. Read more: BBC News
Kenya Airways Plc. is appealing for a cash bailout from the government to be able to survive the next six months as the partially state-owned carrier runs out of money after grounding all international flights to help contain the coronavirus. Read more: MSN
The worst is likely yet to come for high-yield bonds as more defaults loom, according to Goldman Sachs. Such debt faces numerous headwinds, analyst Lotfi Karoui wrote in a note dated April 1. That’s even as the Federal Reserve’s unprecedented steps to pump liquidity into a financial system reeling from the coronavirus pandemic mean investment-grade bond spreads have likely already peaked, according to Karoui. Read more: Bloomberg
Capital Markets Report
In 11 trades recorded yesterday, 21,729 shares were transacted yielding a market turnover of K13,828. A share price loss of K0.01 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in Copperbelt Energy Corporation, Zambeef, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,229.00 points, 0.09% down from its previous close of 4,232.83 points. The market closed on a capitalization of K57,226,241,314 including Shoprite Holdings and K22,987,035,334 excluding Shoprite Holdings.
Chart of the Day: