Story of the Day:
It has come as a curious surprise that in the last few months Coronavirus is now a story of the day and there is no absolute secret that Zambia has been having an increase in the number of positive cases for novel coronavirus popularly known as COVID 19, a situation which has led globally to a negative economic peal, as the virus is causing some serious risk factors to governments, businesses, and investments. Read more
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Zambia’s request for emergency coronavirus funding from the International Monetary Fund may be scuppered because of the southern African nation’s growing debt burden. The Washington-based lender last year cautioned that the nation’s borrowing was on an unsustainable path. And now, even as the fund makes as much as $100 billion available to member countries, the IMF warned it won’t lend money to governments if it’s not sure it will be repaid. Read more: Bloomberg
First National Bank Zambia Limited – FNB has announced the appointment of Bydon Longwe as a new Chief Executive Officer to take over from Leonard Haynes who has served in the position for the last four years. Read more: Zambian Business Times
The price of copper on the London Metal Exchange (LME) yesterday rose to its highest in eight weeks, boosted by expectations of better demand for metals as some countries start to ease lockdowns put in place to curb the coronavirus pandemic. Copper, which is Zambia’s main source of export revenue, made a comeback after weeks of pressure in the wake of the COVID-19, which is affecting economies globally. Read more: Zambia Daily Mail
Stanbic Bank has created the continent’s first-ever Africa-China trade corridor to connect local businesses to export and import opportunities in the Asian country.
The facility is also designed to help small and medium enterprises (SMEs) access working capital financing and facilitate payments, while also handling shipping logistics on behalf of Zambian entrepreneurs. Read more: Zambia Daily Mail
The European Union has extended EUR 12 million or K241.2 million support as its immediate-term contribution to the Covid-19 response in Zambia. Read more: Lusaka Times
International Business and Finance
U.K. GDP (gross domestic product) shrank by 2% in the first three months of the year, quarter-on-quarter, according to preliminary figures released Wednesday, as lockdowns hammered the British economy. Read more: CNBC
Morgan Stanley has agreed to pay a $5 million fine to the Securities and Exchange Commission after allegedly misleading clients and charging hidden trading fees. Read more: Business Insider
India has announced a 20 trillion rupee ($264bn) economic package to help the country cope with its prolonged coronavirus lockdown. In a televised address Prime Minister Narendra Modi said the measures would support farmers and small businesses. Read more: BBC News
Boeing was dealt a double blow in April as deliveries of new planes ground to a near halt and canceled orders continued to climb in response to an unprecedented drop in air travel caused by the coronavirus pandemic. The company delivered only six planes to customers in April, the lowest number of deliveries since 2008. Read more: CNN
The International Monetary Fund has raised Kenya’s risk of debt distress to high from moderate due to the impact of the coronavirus crisis, it said in an assessment published on Tuesday. The East African nation’s debt stood at 61.7% of GDP at the end of last year, up from 50.2% at the end of 2015, the IMF said. Read more: Reuters
Capital Markets Report
In 19 trades recorded yesterday, 18,335 shares were transacted yielding a market turnover of K6,955. A share price loss of K0.01 was recorded in Standard Chartered Zambia. Trading activity was also recorded in BATA and Copperbelt Energy Corporation. The LuSE All Share Index (LASI) closed at 4,090.33 points, 0.09% down from its previous close of 4,094.16 points. The market closed on a capitalization of K56,624,199,184 including Shoprite Holdings and K22,384,993,204 excluding Shoprite Holdings.
Chart of the Day: