Story of the Day:
National Breweries Plc has reported a loss of K28.80 million according to abridged unaudited financial results for the 6 months’ period ended 25 September 2019, according to a statement from the company. Read more
Local Business and Finance
Zambia may be in no mood to tolerate much more currency depreciation, but it will be hard-pressed to prevent it. The central bank increased its overnight lending rate by 10 percentage points on Friday to a record high of 28%. The goal was to instill “stability in the market and to rein in inflationary pressures,” it said. But the tanking currency may stay vulnerable even after the rate hike. Read more: Bloomberg
In a market first, Zazu Africa Limited (Zazu) announced a partnership with Mastercard to issue prepaid cards linked to the Zazu app in a move that will help to reduce cash dependence and increase financial inclusion in Zambia. Read more: Biztech Africa
Mimbula Minerals Limited, a subsidiary of a British firm; Moxico Resources plc is set to break ground next January and has projected to create about 800 permanent jobs for local Zambians over the course of next year. The mining firm will inject between US$30 million and US$70 million in the open pit mine and the mine is expected to produce 30,000 to 40,000 tonnes of copper annually. Read more: Zambian Business Times
The Copperbelt Energy Corporation (CEC) is conducting feasibility studies for the construction of a 350 megawatt renewable energy plant. Read more: Zambia Daily Mail
Liquidity levels in the local market have increased from K1,858.94 billion to K1,904.44 billion with the volumes of funds traded on the interbank also increasing. According to Barclays Bank Zambia’s market update, the funds traded on the interbank also increased from K604.00 million to K627.00 million. Read more: Zambia Daily Mail
Energy Minister Matthew Nkhuwa says power imports from ESCOM of South Africa will start before the end of the week. Mr. Nkhuwa says the 300 Mega Watts is anticipated to reduce about two hours of load shedding. Read more: Lusaka Times
Standard Chartered Bank Zambia has announced the closure of five of its branches without stating any reasons.
Standard Chartered stated that the Mongu, Kasama, Chililabombwe and Luanshya branches would close, whilst the branch at Crossroads Mall in Lusaka would merge with the Kabulonga branch. Read more: News Diggers
International Business and Finance
Global flows of goods across borders are on course to grow at the weakest pace since the financial crisis, according to the World Trade Organization, as trade tensions and rising tariffs continue to weigh on exports and imports. Read more: Wall Street Journal
A “phase one” trade deal between the U.S. and China could be finalized and signed before Christmas this year, according to an executive from bond investment giant Pimco. Read more: CNBC
Alibaba will close its order books to institutional investors early for its upcoming secondary listing in Hong Kong, a sign that demand for shares is strong. The e-commerce giant will close its book at 12 p.m. ET on Tuesday, earlier than initially planned. Read more: Washington Post
Airbus has won $30billion worth of orders for 170 aircraft in another sign of the continued expansion of Middle East airlines. On the second day of the Dubai Air Show, Emirates announced the purchase of 50 Airbus A350-900 XWBs – extra wide body – planes at a list price of $16billion. Read more: BBC News
The Department of Commerce has again extended the temporary general license allowing American companies to sell to Huawei, the embattled Chinese tech company. The existing temporary license was set to expire Monday. The announcement is good news for Huawei and for American tech companies who rely on it as a key customer. Read more: CNN
Japan’s lower house of parliament approved on Tuesday a limited trade deal Prime Minister Shinzo Abe agreed with the United States, clearing the way for tariff cuts next year on items including U.S. farm goods and Japanese machine tools. Read more: Reuters
Capital Markets Report
In 34 trades recorded yesterday, 4,735,278 shares were transacted, resulting in a market turnover of K37,456,049. A share price loss of K0.09 was recorded in Zambia Breweries. The LuSE All Share Index (LASI) closed at 4,296.29 points down by 0.27% from its previous close of 4,308.10 points. The market closed on a capitalization of K56,687,711,032 including Shoprite Holdings and K22,448,505,052 excluding Shoprite Holdings.
Chart of the Day: