Story of the Day:
The bond market continues to dominate the capital markets with a take up of 94% over the equity market with only 6%. However, week 5 which was the last trading week of November ended on a fairly low note with sales of K999 thousand and picked up in the first trading week of December with K133.7 million in turnover. Read more
Local Business and Finance
Shares in First Quantum Minerals moved as high as 5% on December 9 amid renewed speculation the Toronto-listed company could be the subject of a takeover. China’s Jiangxi Copper Company agreed to pay $1.1bn for a stake in First Quantum, becoming it largest shareholder. Read more: Mining Mx
The Kariba Dam has plunged to its lowest level since 1996, raising further risks to the hydropower plants that Zimbabwe and Zambia depend on for nearly half of their power. Read more: Bloomberg
The price of Zambia’s copper has risen marginally driven by increased demand by top consumer China. Read more: Zambia Daily Mail
The African Milling Limited has announced a reduction in the price of mealie-meal by 20 Kwacha, with immediate effect. Read more: ZNBC
The World Bank has partnered with Government to train about 2,000 farmers in innovative farming skills critical in the management of human-wildlife conflicts in Eastern Province. Read more: Zambia Daily Mail
International Business and Finance
The diamond miner Petra Diamonds has announced that it has halted its operations in South Africa after huge power cuts. Read more: ZNBC
Qatar Airways has agreed to take a 60% stake in a new $1.3 billion international airport in Rwanda, the state-run Rwanda Development Board said on Twitter on Monday. Read more: Reuters
Netflix could lose 4 million U.S. subscribers in 2020 amid the proliferation of new streaming services that offer cheaper plans. Read more: Market Watch
The U.S. and China will probably announce some form of trade deal ahead of Sunday — when additional tariffs on Chinese goods are due to kick in — and that’s going to boost financial markets, say analysts. Read more: CNBC
A new U.S. trade deal with Mexico and Canada gained backing from House Democrats, setting the agreement on course for likely ratification by Congress in 2020 and marking a victory for President Trump after months of negotiations to modify it. Read more: Wall Street Journal
Capital Markets Report
In 13 trades recorded yesterday, 4,013 shares were transacted, resulting in a market turnover of K47,206.14. Trading activity was recorded in Zambeef, AEL Zambia, Zanaco and Zambia Breweries. The LuSE All Share Index (LASI) closed at 4,268.90 points down from its previous close of 4,272.91 points. The market closed on a capitalization of K56,573,805,829 including Shoprite Holdings and K22,334,599,849 excluding Shoprite Holdings.
Chart of the Day: