Story of the Day
Two weeks into January 2022, there were no bonds recorded during the week which left the equities market to completely dominate the bond market with a score of 100%. Bonds are a low risk investment issued when the government borrows money from its people. You can purchase bonds using the Lusaka Securities Exchange Application online. Read more
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Energy Regulation Board (ERB) has reduced the pump price of petroleum products by one Kwacha 32 Ngwee for petrol and one Kwacha 22 Ngwee per liter for diesel which will now be sold as low Sulphur Gas oil. The Price of kerosene remains unchanged. Petrol will now be sold at 19 Kwacha 84 ngwee from the current 21 Kwacha 16 ngwee. Read more: ZNBC
Foreign Affairs and International Cooperation Minister Stanley Kakubo says the Government will continue to work closely with the African Development Bank (ADB) to explore opportunities in various sectors of the economy. Mr. Kakubo says through strengthened collaboration between Zambia and the ADB, various opportunities will be actualized. Read more: ZNBC
Zambia’s president has promised not to favour Chinese creditors over western bondholders as he seeks a resolution to the southern African nation’s debt crisis. “What we don’t intend to do is to cross-subsidise — one debt stockholder paying a higher price, if you want to put it that way, or having better terms and another having worse terms,” Hichilema said. “One creditor being of Chinese origin or another origin is not much of the issue here. It’s to make sure we come out of the problem.” Read more: Financial Times
Zambia’s largest bank by asset size Stanbic Bank Ltd has its FY21 earnings revealing exceptional cost efficiency which gave the bank a 93.0% sprint in After Tax Profits (PAT) to K886.9 million year on year. Total income grew 34.6% to K2.92 billion supported by a 32.0% rally in loan & advances income, 37.0% growth in Mark to Market (MTM) gains for duration risk taken in sovereign securities in addition to a 51.0% sprint (to market leadership) in foreign exchange trading earnings line. Read more: The Business Telegraph
International Business and Finance
So far in 2022, Ethiopian bonds (sovereign debt category) have emerged the best performing across emerging markets. Between January 26 and now, the bonds have added gains and rallied to a 13% high, up from a -28% decline in 2021. This is the highest jump recorded this year, out of all the sovereign bonds tracked by Bloomberg across 80 emerging markets. The jump was spurred by the Ethiopian Government’s decision to end a months-long state of emergency in the country. Read more: Business Insider
All eyes are on Africa as the continent is emerging as a leader in the movement towards global bitcoin adoption. Despite ongoing challenges of the pandemic and government restrictions on the use of digital currencies, we saw the crypto economy continue to thrive. Last year, Africa was cited as the third-fastest growing cryptocurrency economy with Kenya, Nigeria, South Africa, and Tanzania ranking in Chainanalysis’ Top 20 Global Crypto Adoption Index. Read more: Business Insider
The United Arab Emirates will be introducing a federal corporate tax on business profits for the first time, the Ministry of Finance announced Monday. The news represents a significant shift for a country that’s long attracted businesses from around the world thanks to its status as a tax-free commerce hub. Businesses will be subject to the tax from June 1, 2023. Read more: CNBC
Shares in electric vehicle maker Tesla climbed more than 10% closing at $936.72 on Monday after Credit Suisse upgraded the stock to “outperform” and the broader market rebounded. Tesla had previously declined almost 20% in January amid a sell-off that dragged the Nasdaq down. Read more: CNBC
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In 53 trades recorded yesterday, 73,454 shares were transacted resulting in a turnover of K162,043. Trading activity was recorded in Airtel, Copperbelt Energy Corporation, Chilanga Cement, Puma, Standard Chartered Zambia and Zanaco. The LuSE All Share Index (LASI) maintained its close at 6,013.80 points, as there were no share price movements. The market closed on a capitalization of K66,982,624,469 including Shoprite Holdings and K32,199,939,029 excluding Shoprite Holdings.
