Story of the Day:
Puma Energy Zambia Plc has reported a 5% fall in sales volumes for the financial year 2019 despite a sizable expansion budget, according to a statement from the company. Read more
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First Quantum Minerals said copper production from Zambia had been “better than expected” for the year to date. “Operations in Zambia have been slightly better than expected with good grades and recoveries within the mixed and sulphide ores at Kansanshi and improved mining volumes and ore grades at Sentinel,” the company said in an update. Read more: Mining Mx
Economist Oliver Saasa has urged the private sector to develop strategies that will assist stabilize the economy. Professor Saasa says government and the private sector should convene a meeting where these strategies can be considered for implementation. He says lowering interest rates and injecting money into the economy will help cushion the impact of COVID-19 on the economy. Read more: ZNBC
Government must immediately suspend or reduce taxes related to data and voice telecommunication services to cushion the social and economic impact of the Coronavirus, says Zambia Chamber of Commerce and Industry (ZACCI) president Chabuka Kawesha. Read more: News Diggers
The Zambia National Farmers’ Union (ZNFU) says Zambia is likely to reap a good harvest in the forthcoming crop marketing season, mainly boosted by early maize planting that was undertaken by farmers in the current farming season. Read more: News Diggers
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Inward Foreign Direct Investment (FDI) and the effects it has on the host country has been the subject of debate over the years, producing a wide range of empirical results in academic literature with little convergence whereas policymakers generally accept that inward Forward Direct Investment is valuable to their economy. Read more
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The spread of the coronavirus into sub-Saharan Africa will hit the region’s economic growth hard, with direct disruptions to people’s livelihoods, tighter financial conditions, reduced trade and investment and a steep drop in commodity prices, the International Monetary Fund said on Wednesday. Read more: Reuters
South Africa’s central bank on Wednesday launched a bond-buying programme, seeking to drum up demand in credit markets as the coronavirus epidemic weighs on the country’s already ailing economy. Read more: Reuters
Gold continued to push higher on Tuesday as a recent wave of selling dried up and Goldman Sachs told its clients the time had come to buy the “currency of last resort”. Read more: Financial Times
The amount of distressed debt in the U.S. has quadrupled in less than a week to nearly $1 trillion, reaching levels not seen since 2008 as the collapse of oil prices and fallout from the coronavirus shutters entire industries across the globe. Read more: Bloomberg
Singapore’s economy suffered its biggest contraction in a decade in the first quarter, data showed on Thursday, as the coronavirus pandemic prompted the city-state to cut its full-year gross domestic product (GDP) forecast and plan for a deep recession. Read more: Al Jazeera
The U.S. has called on OPEC kingpin Saudi Arabia to put a stop to its ongoing oil price war with non-OPEC leader Russia. In a statement released by the U.S. State Department Wednesday, a spokesperson confirmed that Secretary Mike Pompeo had spoken with Saudi Crown Prince Mohammed bin Salman on Tuesday. Read more: CNBC
The World Bank and International Monetary Fund have called on all official bilateral creditors to suspend debt payments from International Development Association countries that request patience with immediate effect due to the Coronavirus outbreak. They have also invited the G20 leaders to task the bank and the IMF to identify countries with unsustainable debt situations, and prepare a proposal for comprehensive action by official creditors to address both the financing and debt relief needs of IDA countries. Read more: ZNBC
Kenya’s president has announced tax relief and pay cuts for himself and his deputy as well as a category of top government officials. All savings are expected to go into helping combat the coronavirus pandemic. Speaking on Wednesday, President Kenyatta said himself and deputy Ruto will forgo 80% of their salaries whiles Cabinet Secretaries and Chief Administrative Secretaries to take 30% pay cut each and 20% for Permanent Secretaries. Read more: Africa News
Capital Markets Report
There were no trades recorded yesterday. The LuSE All Share Index (LASI) maintained its close at 4,237.08 points, as there were no share price movements. The market closed on a capitalization of K57,261,419,528 including Shoprite Holdings and K23,022,213,548 excluding Shoprite Holdings.
Chart of the Day: