Story of the Day:
In tail of mixed fortunes, Financial analytics Zambia forecasts October 2019 will go on record as the best performing month for the equity market and the worst for the corporate bond market. With only 4 more trading days remaining in October, Zambian Breweries trades over the last 3 weeks recorded a turnover in excess of K81.6 million from 10.3 million shares being traded. Read more
Local Business and Finance
Commerce Trade and industry Minister Christopher Yaluma says there is need for Zambia and Angola to continue undertaking various initiatives that will enhance trade and investment relations. Mr Yaluma says among the initiatives that the two countries are pursing is the development of the Lobito corridor with the support from the African Development Bank. Read more: ZNBC
International Copper Study Group (ICSG) has forecast a 4% uptick in global refined output for the year 2020 to 280,000 metric tons. A rise of around 4% is expected in world refined production in 2020 based on capacity expansion in China, improvements in DRC and Zambia. Read more: The Business Telegraph
Nine months treasury bill yields repriced 59 basis points higher to 27% in a poorly subscribed government security debt sale on the eve of Zambia’s Independence Day celebrations. With only about K453million of cash into the 23 October, the central bank in Africa’s copper hotspot managed to raise only K323million in cash terms translating to 34% subscription. Read more: The Business Telegraph
Fitch Ratings says the 2020 national budget has failed to address external financing risks for the country. In a report, the rating agency says Zambia’s 2020 Budget could increase risks to the sovereign’s external debt sustainability unless new sources of grant funding or concessionary lending are found, Fitch Ratings says. Read more: Lusaka Times
International Business and Finance
The U.S. spent nearly $1 trillion more in fiscal 2019 than it took in, the highest deficit in seven years that would have been bigger without a rebound in corporate tax revenue. Read more: Wall Street Journal
The U.S. will consider extending certain tariff exclusions on $34 billion of imports from China as the two nations work toward a trade agreement, the Office of the U.S. Trade Representative said Monday. Read more: CNBC
HSBC, Europe’s largest bank, plans to restructure its loss-making businesses after the lender reported an 18% on-year drop in pre-tax profit for the third quarter, group CFO Ewen Stevenson said. Read more: BBC News
South African exports to the U.S. are at risk pending a review of the country’s eligibility for a preferential-trade program. Read more: Bloomberg
JPMorgan is quietly shrinking its workforce in New York. The bank’s been building up its presence in other locations and is now considering relocating several thousand New York-based employees out of the area to help rein in costs ahead of a possible economic downturn, according to people with knowledge of the bank’s strategy. Read more: Bloomberg
Capital Markets Report
In 11 trades recorded yesterday, 184,701 shares were transacted, resulting in a market turnover of K168,202. Trading activity was recorded in Copperbelt Energy Corporation, Real Estate Investments Zambia and Zambeef. The LuSE All Share Index (LASI) closed at 4,330.56 points down by 0.50% from its previous close of 4,352.11 points. The market closed on a capitalization of K56,846,537,472 including Shoprite Holdings and K22,607,331,492 excluding Shoprite Holdings.
Chart of the Day: