Story of the Day:
In the second week of April 2020 trading on the LuSE, the bond market dominates the equities market and we see a percentage drop of one percent from last weeks record on the equities market. As it scores a 98% on the bond market and 2% on the equities side. Read more
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Zambia’s government has been urged by a group of former finance ministers and other senior ex-officials to secure an urgent IMF loan as the coronavirus pandemic brings the southern African nation’s debt crisis to a head. In a letter from several former senior economic officials, including former Bank of Zambia governor, Caleb Fundanga, and former finance ministers including Felix Mutati and Ng’andu Magande, signatories advised president Edgar Lungu to sign a prompt IMF rescue package. Read more: Financial Times
The Zambian government has upped the ante in its dispute with Glencore by detaining the head of its local subsidiary as he tried to leave the southern African country on Wednesday evening. Read more: Financial Times
The Ministry of Commerce and Industry says it is working on a stimulus package for businesses. Minister of Commerce, Christopher Yaluma says government is aware that both big and small-scale local businesses have been affected. Mr. Yaluma says the proposal will have to go to the council of Ministers before it is taken to the President. He says the Ministry of Commerce wants businesses to survive beyond the COVID-19. Read more: ZNBC
Zambia’s only option is to seek a bailout from the International Monetary Fund as years of excessive borrowing coupled with the impact of the coronavirus pandemic have left it struggling to pay its debts, the main opposition leader said. Read more: Bloomberg
Copper prices on the international market have continued to rise while the Kwacha is anticipated to shade some of its gains in the near term in the absence of healthy greenback inflows. Read more: Zambia Daily Mail
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Africa is expected to reverse an economic contraction linked to the coronavirus crisis next year after containment measures are eased, the International Monetary Fund said, but the impact will be felt for years to come. Read more: Reuters
Ratings agency Moody’s cut its forecast for South Africa’s economy to a 2.5% contraction in 2020, citing the impact of a nationwide, five-week shutdown aimed at limiting the spread of the novel cornavirus. Read more: Reuters
The IMF has suggested the UK and the EU should “not to add to uncertainty” from coronavirus by refusing to extend the period to negotiate a post-Brexit trade deal. Read more: BBC News
Economies in Asia will see zero growth this year for the first time in 60 years, the International Monetary Fund (IMF) has said. Its bleak outlook for the region comes as it warns the global economy will face the “worst recession since the Great Depression”. Read more: CNN
Several U.S. airlines on Tuesday said they reached agreements with the Treasury Department for $25 billion in government grants aimed at softening the blow from the coronavirus. Read more: CNBC
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In 4 trades recorded yesterday, 80,151 shares were transacted yielding a market turnover of K41,070. Trading activity was recorded in AEL Zambia and Zanaco. The LuSE All Share Index (LASI) maintained its close at 4,147.19 points, as there were no share price movements. The market closed on a capitalization of K56,018,151,360 including Shoprite Holdings and K21,778,945,380 excluding Shoprite Holdings.
Chart of the Day: