Story of the Day
Professional Insurance Corporation Zambia Plc has recorded a Gross Written Premium (GWP) in excess K1 billion representing a growth of 31% compared to K814 million written in 2020, according to the company’s 2021 annual report. In her letter to shareholders, Board Chairperson Inonge Susan Wambulawae stated that “despite the high cost of doing business and various economic challenges that businesses faced in 2021, Professional Insurance managed to record a good performance”. With a Gross Written Premium of K1 billion, the corporation was the highest and the first in the market to achieve this milestone. Read more
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President Hakainde Hichilema has clarified that government does not intend to give back Konkola Copper Mines (KCM) to Indian mining firm Vedanta Resources. Speaking during a Press Conference at State House, monitored by the Zambian Business Times-ZBT, President Hichilema explained that government is looking for a solution for KCM so that the mine can contribute to the three million tonnes copper production which government has targeted. He said government also wants Mopani Copper Mines (MCM) to return to full production in order to increase production, earn more revenue and employ more people in the mining sector so that all citizens can benefit from the mines. Read more: Zambian Business Times
Risk skew in Africa’s second largest copper producer Zambia is skewing towards longer dated tenors for Kwacha government securities as geopolitics autopsies. Thursday April 21 treasury bill sale saw the first undersubscription of the year 2022 with the central bank raising K580.8 million of the K2 billion of assets on offer. Appetite was fairly weak at K632.3 million with significant interest in the 6 months tenor. The yield curve continues to sag with the 6 and 9 months ebbing 19.75 and 70 basis points to 10.8024% and 11.0001% respectively as the 1 year rose 47 bps to 13.7500%. Read more: The Business Telegraph
The World Bank is impressed with Zambia’s progress in implementing fiscal and structural reforms and for improving public service delivery in health and education. The global bank has called for rapid debt restructuring in the southern African country. Read more: Zambia Daily Mail
Minister of Small and Medium Enterprises Development Elias Mubanga has announced the appointment of a new board of commissioners for the Citizens Economic Empowerment Commission (CEEC). In a statement, Monday, Mubanga said those appointed were Jason Kazilimani as CEEC board chairperson, Comfort Mulenga and Sheila Mudenda as Commissioners, among others. Read more: News Diggers
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Pan-African bank, Ecobank Transnational Incorporated (ETI), has released its unaudited financial statement for Q1 2022 which shows some very positive financial indicators. According to a copy of the report which was obtained by Business Insider Africa, Ecobank Transnational’s gross earnings increased by 11% to $589.5 million, compared to $532.8 million during the comparable period in Q1 2021. Similarly, total revenue increased by 7% to $436.1 million. Read more: Business Insider
Stock markets are turbulent and Morgan Stanley is warning clients the ride is about to get even bumpier. Investors have “very few places to hide” in markets right now, with even defensive stocks succumbing to the pressure in recent days, Morgan Stanley equity strategists led by Mike Wilson wrote on Monday. “The market has been so picked over at this point, it’s not clear where the next rotation lies,” Wilson wrote. “In our experience, when that happens, it usually means the overall index is about to fall sharply with almost all stocks falling in unison.” Read more: CNN
The board of Twitter has agreed to a $44billion takeover offer from the billionaire Elon Musk. Mr Musk, who made the shock bid less than two weeks ago, said Twitter had “tremendous potential” that he would unlock. He also called for a series of changes from relaxing its content restrictions to eradicating fake accounts. Read more: BBC News
Oil prices fell sharply Monday as lockdowns in China stoked concerns that the country’s zero-Covid strategy will sap energy demand in the world’s second-largest economy. US oil dropped as much as 6.7% to a two-week low of $95.28 a barrel on Monday. Crude finished the day down 3.5% to $98.54 a barrel, its first close below $100 since April 11. Brent, the world benchmark, fell about 4%. Read more: CNN
Capital Markets Report
In 44 trades recorded yesterday, 547,008 shares were transacted resulting in a turnover of K9,205,474. A share price loss of K0.65 was recorded in Zambia Sugar. Trading activity was also recorded in Airtel, Copperbelt Energy Corporation, First Quantum Minerals Zambia, Zambeef, and Zanaco. The LuSE All Share Index (LASI) closed at 6,926.80 points, 0.68% down from its previous close of 6,973.96 points. The market closed on a capitalization of K70,966,518,477 including Shoprite Holdings and K36,183,833,037 excluding Shoprite Holdings.