Story of the Day:
ZCCM IH has announced that the matter in which it filed a petition in the High Court of Zambia regarding the future of Konkola Copper Mines is currently ongoing and has provided for further subtle details in the matter. Read more
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The Bank of Zambia cut its key interest rate for the first time in more than two years to counter the impact of the coronavirus on the economy, even as inflation surged to a 43-month high in April. The monetary policy committee reduced the rate to 9.25% from 11.5%, Governor Denny Kalyalya told reporters Wednesday in Lusaka, the capital. That’s the biggest cut since the benchmark policy rate was introduced in March 2012. Read more: Bloomberg
Disruptions caused by COVID-19 to Zambia’s economic activities has had a telling effect on local trade as the country records its sharpest fall ever in private sector business conditions, results of a survey showed. The headline PMI figure sank to 37.3 in April from 44.7 in March, the lowest it has ever been since the survey began in March 2015. Read more: Xinhua
Supreme Court of Zambia has ordered Mopani Copper Mines to pay the Zambia Revenue Authority (ZRA) over K240 million tax debt accumulated over a period of time. Read more: Zambia Reports
Minister of Finance Bwalya Ng’andu says his ministry is working on a coronavirus fund aimed at reaching out to a number of small and medium enterprises (SMEs) in need of relief. Read more: Zambia Daily Mail
MTN Zambia has launched a K180million network upgrade operation aimed at helping the nation adjust to the effects of the Coronavirus pandemic outbreak. MTN Zambia Chief Executive Officer Bart Hofker says the new operation called the Project Summer will enhance economic participation among Zambians during the crisis as many are working from home. Read more: ZNBC
The Development Bank of Zambia has announced the appointment of Dr. Samuel Mulenga Bwalya as its Managing Director (MD). Read more: Lusaka Times
Limited a company running Chibuluma Copper Mines has informed government of its intentions to place its operations on care and maintenance. Mines Minister Richard Musukwa confirmed this in Kitwe, but said Government would not allow the mine to send people on the streets. Read more: News Diggers
International Business and Finance
The US Senate has passed a bill that could block some Chinese companies from selling shares on American stock exchanges. It would require overseas firms to follow US standards for audits and other financial regulations. The measure now has to be passed by the House of Representatives before being signed into law by President Trump. Read more: BBC News
Britain is now being paid to borrow money. It’s the latest country to sell government debt at a negative yield — meaning that investors who hang onto the bonds until their maturity point will receive a little less than they paid for them. The UK’s Debt Management Office said Wednesday that it sold £3.75 billion ($4.59 billion) worth of three-year bonds, called gilts. Read more: CNN
Minutes from the Federal Reserve’s April meeting released Wednesday highlighted key risks emerging throughout the US as lockdowns pushed forward. Members of the Federal Open Market Committee found that a “more pessimistic projection was no less plausible” than abase case that featured economic growth re-emerging in the second half of the year. Read more: Business Insider
Deutsche Bank’s chairman Paul Achleitner said he intends to step down when his term ends in 2022, heralding a new era at Germany’s largest lender as it struggles to become profitable. In an effort to reverse five years of losses, Deutsche Bank is currently undergoing a major overhaul that includes streamlining its investment bank and cutting 18,000 jobs globally. Read more: Reuters
Capital Markets Report
In 10 trades recorded yesterday, 14,713 shares were transacted yielding a market turnover of K3,973. Trading activity was recorded in Standard Chartered Zambia, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 4,078.25 points, as there were no share price movements. The market closed on a capitalization of K56,571,643,786 including Shoprite Holdings and K22,332,437,806 excluding Shoprite Holdings.
Chart of the Day:
