Story of the Day:
In a tale of opposites, the final week of October 2019 showed the inverse relationship of the corporate bond market and the equity market with the latter recording its best performance of 2019 and eclipsing the bond market for the first time during the year. Read more
Local Business and Finance
Minister of Mines and Minerals Development Richard Musukwa says Government will not nationalise the mines. Mr Musukwa also commended Konkola Copper Mines (KCM) management for stabilising operations. Read more: Zambia Daily Mail
The Zambia Revenue Authority (ZRA) has signed a memorandum of understanding (MoU) with the Zambia Development Agency (ZDA) to attract foreign direct investment and broaden the revenue base in the country. Read more: Zambia Daily Mail
Bank of Zambia Governor Denny Kalyalya says there is need for fiscal consolidation by implementing tight expenditure controls, and increased revenues to grow the economy. Dr. Kalyalya says halting contraction of non-concessional debt and accumulation of domestic arrears are critical imperatives to minimize macroeconomic vulnerabilities in Zambia. Read more: ZNBC
Various key stakeholders have negatively reacted to Zesco Limited’s application to the Energy Regulation Board (ERB) to increase electricity tariffs. On its part, the ERB has called for a public hearing so that Zesco and its customers can state their position. Read more: Zambian Observer
The Ministry of Finance is next week expected to pay 20 million United States dollars to Maamba Collieries Limited. Finance Minister Bwalya Ng’andu says the money is meant to dismantle outstanding arrears ZESCO owes Maamba Collieries Limited for power. Read more: Lusaka Times
International Business and Finance
Shoprite Holdings Ltd. started a review of supermarket operations outside South Africa and would consider exiting certain countries if that would help reverse regional sales declines. Africa’s biggest grocer reported a 4.9% fall in third-quarter revenue when its main market is excluded, the Cape Town-based company said at the start of its annual general meeting on Monday. Read more: Bloomberg
Nigeria said on Sunday its borders would remain closed to trade until at least January 31, 2020. Nigeria launched a partial border closure in August to tackle smuggling of rice and other goods. Last month the head of customs confirmed that all trade via land borders was halted indefinitely. Read more: Africa News
Uber Technologies Inc. reported another mega-loss on Monday, but its chief executive said there is a light at the end of the profitability tunnel. The ride-hailing service reported a third-quarter loss of $1.16 billion, or 68 cents a share, compared to a $986 million loss in the same quarter a year ago. Read more: Market Watch
U.S. officials are considering removing tariffs on $112 billion in Chinese goods as a concession to seal a “phase one” trade deal, the Financial Times reported late Monday. The 15% tariffs on items such as clothing, appliances and flat-screen monitors were put into effect on Sept. 1. Read more: Market Watch
Microsoft Japan said sales had been boosted by nearly 40% during an experiment in which staff worked a four-day week on full pay. Offices were closed on every Friday of August 2019 and full-time staff were given “special leave”, which was paid. Read more: BBC News
Over the third quarter of the year, gold recorded a “spectacular” performance, with its dollar value appreciating by 12%, compared with the prior quarter, and was valued at 22% more year-on-year, at an average of $1 472/oz. Read more: Mining Weekly
Guyana, a country of about 780,000 which shares a border with Brazil, Suriname and Venezuela in the northeast of South America, will see economic growth of 86% in 2020, according to the International Monetary Fund. That’s up from 4.4% in 2019. Read more: CNBC
Capital Markets Report
In 21 trades recorded yesterday, 3,428 shares were transacted, resulting in a market turnover of K4,984. Trading activity was recorded in Copperbelt Energy Corporation and Standard Chartered Bank Limited. The LuSE All Share Index (LASI) maintained its previous close of 4,312.77 points as there were no price movements. The market remained on a capitalization of K56,756,287,458 including Shoprite Holdings and K22,517,081,478 excluding Shoprite Holdings.
Chart of the Day: