Story of the Day:
In early October 2019, food processing conglomerate Zambeef Plc announced that its half year fears of a weaker 2019 performance had been overturned by the outperformance from its Cropping division such that the full year estimates for 2019 for adjusted Profit Before Tax (PBT) was likely to be 20% higher than analyst’s expectations. Read more
Local Business and Finance
Fitch ratings agency has that the 2020 budget in Zambia, could exacerbate risks to the sovereign’s external debt sustainability unless new sources of grant funding or concessionary lending are found. Read more: The Business Telegraph
MUZ President, Joseph Chewe has revealed to Phoenix News in Kitwe that the President of Lumwana Barrack has confirmed that the Lumwana mine was up for grabs and that the process of selling the mine is intended to take off in January 2020. Read more: Zambian Observer
Government with its cooperating partners will disburse over K27 million to farmers in Muchinga province under the Aquaculture seed fund being managed by the Citizens Economic Empowerment Commission (CEEC). The money is meant to boost the Aquaculture value chain in the province. Read more: ZNBC
Suyog Natural Resources Limited has set aside US$1.5 million as investment in a large-scale manganese mine, with a monthly projected production of 500 metric tonnes. The proposed manganese mine in Mansa has an estimated 30-year lifespan. Read more: Zambia Daily Mail
Zesco Limited managing director Victor Mundende says the deal to start importing 300 megawatts of electricity from South Africa’s Eskom has stalled because that utility is demanding to be paid two months’ security deposit of US $41 million. Read more: News Diggers
International Business and Finance
South Africa’s National Assembly approved a law that allocates a $4 billion bailout to the trouble state power utility Eskom Holdings SOC Ltd. The Special Appropriation Bill will see the government give Eskom 26 billion rand in the year through March and 33 billion rand the following year. Read more: Bloomberg
Airtel Africa and Ecobank Group will partner to improve access in Africa to financial services. The partnership – which is subject to regulatory approval in each market – will allow Airtel and Ecobank customers across Africa the ability to make: online deposits and withdrawals, effect real time domestic and international money transfers, make in-store merchant payments, and access loans and savings products. Read more: Business Chief
China has the world’s largest number of “unicorns,” privately-held start-up firms valued at more than $1 billion, according to a new report. Read more: BBC News
The Fed injected $99.9 billion in temporary liquidity and $7.5 billion in permanent reserves into financial markets. Read more: Wall Street Journal
Christine Lagarde, who takes the helm of the European Central Bank next month, said in an interview that the U.S. risks diminishing its role as a global leader and warned of dire consequences from its trade war with China. Read more: Wall Street Journal
Lawmakers in the U.K. Parliament voted to reject a limited time frame for reviewing legislation related to Britain’s withdrawal from the European Union. MPs rejected the timetable, which would have seen the Withdrawal Agreement Bill (WAB) legislation whizz through Parliament in 3 days, by 322 to 308 votes. Read more: CNBC
Boeing Co on Tuesday ousted the top executive of its commercial airplanes division, Kevin McAllister, marking the first high-level departure since two fatal crashes of its 737 MAX jets. Read more: Reuters
Capital Markets Report
In 12 trades recorded yesterday, 3,781 shares were transacted, resulting in a market turnover of K4,771. Trading activity was recorded in Copperbelt Energy Corporation, Standard Chartered Bank Limited and Zambeef. The LuSE All Share Index (LASI) closed at 4,359.34 points up by 0.09% from its previous close of 4,355.43 points. The market closed on a capitalization of K56,949,993,691 including Shoprite Holdings and K22,710,787,711 excluding Shoprite Holdings.
Chart of the Day:
