Story of the Day:
FAANG stocks are having a hell of a trading run at the moment with all the drama that has engulfed several top tier stock exchanges such as the NASDAQ where they are listed. FAANG refers to the ETF made up of Facebook, Apple, Amazon, Netflix, and Google (Alphabet) shares. These shares are what has been collectively referred to as the ‘blue-chip’ (a financial term used to refer to consistent high-profit margin companies). Read more
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The Bank of Zambia (BoZ) says preparations to start keeping gold as an alternative foreign reserve with a mining firm have advanced. Governor Denny Kalyalya said BoZ is currently preparing to house gold as an alternative foreign reserve as the metal is not kept the same way as currencies. Read more: Zambia Daily Mail
The Zambia Chamber of Mines has urged the government to urgently engage with the sector and agree relief measures to address the issues facing mining companies in the midst of COVID-19. The chamber said in a statement it had submitted a broad three-phase economic plan to the government, to urgently manage the economic impact arising from the coronavirus pandemic. Read more: Reuters
Zambia risks losing about 400 million U.S. dollars in the tourism sector due to COVID-19, a government official said on Wednesday. Minister of Tourism and Arts Ronald Chitotela said an assessment of the impact of COVID-19 has been conducted which has revealed that about 400 million U.S. dollars may be lost in both service and non-service sub-sectors in the sector. Read more: Xinhua
Finance Minister Dr Bwalya Ng’andu has refuted claims that government is considering giving away Mopani Copper Mines Plc in exchange for wiping out Chinese debt. According to an article published in the Wall Street Journal (WSJ), Monday, the Zambian Government is considering handing over the Glencore-owned mining asset to China in exchange for debt relief. Read more: News Diggers
Labour Minister Joyce Simukoko says her office is monitoring developments in the labour sector in view of the Covid-19 and may come up with additional measures in consultation with all social partners which include the Zambia Federation of Employers (ZFE) and trade unions. Read more: ZNBC
Having opened trading at 18.475 the Kwacha sprinted 2.02% to an intraday low of 18.1000 again the Dollar on supported by corporate conversions to meet payroll obligations well ahead of the April month end. Foreign currency demand from central bank green back purchases saw the copper currency shave 1.13% of earlier gains to close trading at 18.305. Read more: The Business Telegraph
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South Korea’s virus-hit economy suffered the worst contraction since the global financial crisis in the first quarter. Gross domestic product shrank 1.4% in the three months through March from the prior quarter, slightly above economists’ forecast of a 1.5% contraction. Read more: Bloomberg
The New York Stock Exchange might reopen in phases after May 15, two sources who were on a conference call with NYSE Chief Operating Officer Michael Blaugrund told CNN Business. The sources also say the timing could change. Read more: CNN
It has never been implemented in the euro zone, but ultimately the European Central Bank (ECB) could reach a point where so-called “helicopter money” is its best option amid the coronavirus crisis. The term refers to an unconventional monetary policy, where a central bank prints additional money and distributes it directly to its citizens. Read more: CNBC
The UK’s inflation rate fell to 1.5% in March, largely driven by falls in the price of clothing and fuel ahead of the coronavirus lockdown. The Consumer Prices Index (CPI) fell from 1.7% in February, according to the Office for National Statistics (ONS). Read more: BBC News
Bitcoin appears to be in a consolidating bull market and is poised to cement its status as digital gold, according to a new report from Bloomberg. Read more: The Daily Hodl
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In 25 trades recorded yesterday, 201,474 shares were transacted yielding a market turnover of K214,774. Trading activity was recorded in AEL Zambia and Copperbelt Energy Corporation. The LuSE All Share Index (LASI) maintained its close at 4,140.56 points, as there were no changes in share price. The market closed on a capitalization of K56,841,276,360 including Shoprite Holdings and K22,602,070,380 excluding Shoprite Holdings.
Chart of the Day: