Story of the Day:
According to Kennedy Mupeseni of the Times of Zambia, Kagem Mining Limited held an auction between the 15th – 17th April 2021. The result of the auction is revenue to the value of $31 million or K600 million. The revenue comes from the combination of 5 mini auctions which were being held. The mine managed to achieve an average price of $115.5 per carat. Read more
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All large scale mining companies in Zambia will effective June 2021 be required to pay all their tax obligations directly to the Bank of Zambia (BoZ) in US dollars. BoZ has revealed that following the initial decision to collect mineral royalty in US dollars, the central bank was able to use the proceeds effectively, which resulted in the reduced decrease in the international foreign exchange reserves. Read more: Zambian Business Times
The Bank of Zambia (BoZ) says strengthening micro and macro frameworks through formulation of a sound legal framework is critical in the promotion of efficient operations of the financial system and foster financial inclusion. Read more: Zambia Daily Mail
Lusaka Securities Exchange (LuSE) and Kukula Capital have been admitted to be part of the first cohort that will participate in the capital market sandbox, the Securities and Exchange Commission (SEC) has said. Last month, SEC launched a platform dubbed regulatory capital market sandbox to protect investors and promote development of the local capital market. Read more: Zambia Daily Mail
President Edgar Lungu has asked Zambians for a fresh mandate in the general elections and has assured them that difficult days are coming to an end. “We are going through hard times. We have experienced the weakening of the Kwacha as well as high prices of commodities,” he said. “Added to this situation is the impact of the COVID-19 pandemic on key sectors of our economy leading to reduced employment opportunities. Read more: Zambia Reports
International Business and Finance
HSBC has reported an increase of 79% in first quarter profits compared to the same quarter in 2020. Europe’s biggest bank by assets reported profit before tax of $5.78bn, up from $3.21bn a year ago. The bank also tipped improved conditions ahead, with growth in customer lending in 2021. Read more: BBC News
Tesla has posted first quarter profits of $438m bolstered by sales of Bitcoin and environmental credits. Revenues also increased by 74% compared to the first quarter in 2020, despite production hurdles. However, profits were also dented by a $299m payment to the electric carmaker’s chief executive Elon Musk. Read more: BBC News
UBS reported on Tuesday net income of $1.8 billion for the first quarter of 2021, as it revealed a hit to earnings from the scandal involving Archegos Capital. The Swiss bank said revenues were $774 million lower as a result of the default by the Archegos hedge fund, which collapsed last month after taking on too much risk. The U.S.-based family office was a client of UBS’ prime brokerage business. Read more: CNBC
Apple is the only American company to reach a $2 trillion market value. But it could soon have a lot more company in that elite club. Microsoft is worth just under $2 trillion. Amazon has a market capitalization of $1.7 trillion, and Google owner Alphabet is worth about $1.5 trillion. Tech stocks have come roaring back in recent weeks, helping to push these Nasdaq stalwarts and others to near record highs. Read more: CNN
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In 17 trades recorded yesterday, 13,321 shares were transacted resulting in a turnover of K19,249. A share price gain of K0.53 was recorded in Lafarge. Trading activity was also recorded in Copperbelt Energy Corporation, SHOP and Zanaco. The LuSE All Share Index (LASI) closed at 4,113.54 points, 0.59% up from its previous close of 4,089.24 points. The market closed on a capitalization of K58,242,363,948 including Shoprite Holdings and K23,997,723,174 excluding Shoprite Holdings.
Chart of the Day: