Story of the Day:
The head of Zambia’s largest bank, Stanbic, has challenged financial institutions to increase the role they play in the country’s quest to build a savings-conscious society. Stanbic Bank Zambia Chief Executive Leina Gabaraane says financial institutions have an obligation to promote financial literacy and help forge a culture of saving in the country through public awareness programmes coupled with specially designed products and services. Read more
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Zanaco Plc showed solid leadership in total revenue earnings of K1.6billion, a 41.2% climb from a year ago supported by a healthy interest led income line and a homerun in both fees and commissions adding to foreign exchange trading earnings. Zanaco Plc’s annual after tax earnings grew 17.1% to K206.3million supported by a 3Q20 K108million (PAT). Read more: The Business Telegraph
Growing its year on year revenue by 35.1%, Zambia’s largest bank by asset size, Stanbic Bank Zambia trail blazed a COVID suppressed market in Africa’s red metal producer demonstrating third quarter stellar performance. Tracking after tax profits Stanbic grew 11.9% to K360million a new annual third quarter year date high water mark industry level ever seen. Read more: The Business Telegraph
The Bankers Association of Zambia (BAZ) says the banking sector has managed to invest about K4.6 billion in the economy between April and September 2020 to help reduce liquidity amidst the covid-19 pandemic. BAZ CEO Leonard Mwanza says from the money put in the economy; K1.6 billion is from the Central bank through the K10billion stimulus package, while commercial banks contributed K2.9 billion. Read more: ZNBC
Anglo American Chief Executive Mark Cutifani says it was not responsible for lead poisoning at Kabwe lead mine nearly 50 years ago. The mine says it plans to defend itself after a class action was filed against. The class action suit was filed last week by South African law firm Mbuyisa Moleele and UK-based Leigh Day on behalf of what they say is estimated to be more than 100,000 individuals over allegations of negligence. Read more: Lusaka Times
Zambia’s refined copper export earning in September increased by 20.8 percent to over K12.7 billion from K10.5 billion in August due to improved prices on the international market. During the period under review, copper prices on the London Metal Exchange (LME) increased by 3.3 percent to US$6,712 from US$6,496.7 per metric tonne. Read more: Zambia Daily Mail
Metal exploration company Castillo Copper said a recently completed systematic infill soil sampling campaign had confirmed eight drilling targets at Mkushi project in Zambia’s copper-belt. The results confirmed eight target areas with ‘significant copper anomalism and strike lengths, ranging 1.5km to 4.2km, which extend known mineralisation compared with the January 2020 campaign,’ the company said. Read more: The Market Herald
International Business and Finance
Markets have turned higher as investor optimism rises ahead of the US presidential election today. The three main share indexes in the US all gained ground on Monday, reversing course after sharp falls last week. Oil prices also turned negative in US trading hours, after earlier hitting a five-month low following fresh virus-induced lockdowns. The falls followed countries including the UK, France and Germany tightening restrictions on social activity. Read more: BBC News
The U.S. deficit is already burgeoning and it’s set grow even bigger as lawmakers push for a second stimulus package to beat the pandemic fallout. The additional costs of funding the package will have to be through issuing more U.S. Treasurys — but that raises the question of who will buy them. It comes amid new shifts in the geopolitical landscape, as China — previously the top purchaser of U.S. Treasurys — cuts its holdings, analysts pointed out. Read more: CNBC
Botswana Stock Exchange (BSE) on Monday announced that the local market has become a viable and attractive destination for international and regional companies. Speaking at the opening bell ceremony for November, BSE Chief Executive Officer, Thapelo Tsheole said companies looking to expand and penetrate new markets are making Botswana their preferred address. Read more: CGTN
Australia’s central bank cut its cash rate to a record low of 0.1% today and said it planned to buy $100 billion Australian dollars ($70.5 billion) in longer-dated government debt as the economy struggle to recover from a Covid-inflicted recession. The Reserve Bank of Australia (RBA) also cut its target for three-year bond yields to 0.1%, from 0.25%, following a monthly Board meeting. Read more: CNBC
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In 9 trades recorded yesterday, 8,777 shares were transacted yielding a market turnover of K8,187. Trading activity was recorded in Airtel, Copperbelt Energy Corporation, Zambia Breweries, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its close at 3,809.22 points, as there were no share price movements. The market closed on a capitalization of K57,090,342,990 including Shoprite Holdings and K22,851,137,010 excluding Shoprite Holdings.
Chart of the Day: