Lusaka Securities Exchange (LuSE) listed Real Estate Investments Zambia (REIZ) recorded a steep decline in PAT earnings for the year 2018 to K2.82 million from K25.03 million on account of a higher exchange loss and redevelopment costs last year. Revenues slowed to K50.57 million, 22.4% lower from K65.16 million a year ago attributed to business disruption at its cash cow asset Arcades Shopping center that underwent redevelopment and upgrade. To that effect occupancy waned to 35% vacancy rate reflecting rental income forgone compounded with a goodwill rental remission gesture of K3.1 million that added to redevelopment costs. The real estate…
Author: The Editor
Boeing Co. is a name that is globally known because most big Airlines have Boeing birds in their fleet. This analysis will skew more towards Boeing (BA: NYSE) as a business and listed stock on the New York Stock Exchange. Brief history Founded in 1916 by William Boeing and was registered as Pacific Aero Products Company. It is an American multinational specialized in design manufacture and sale of airplanes, rotor crafts, rockets satellites and missiles globally. Boeing is the 5th largest defense contractor. As at Dec 2018 Boeing Assets were in excess of USD$117 billion. BA is a product of…
Boeing is a name that is globally known because most big Airline have their aircraft’s in their fleet. This analysis will skew more towards Boeing (BA: NYSE) as a business and listed stock on the New York Stock Exchange. Brief history Founded in 1916 by William Boeing and was registered as Pacific Aero Products Company. It is an American multinational specialised in design manufacture and sale of airplanes, rotorcrafts, rockets satellites and missiles globally. Boeing is the 5th largest defence contractor. As at Dec 2018 Boeing Assets were in excess of USD$117billion. BA is a product of the merger between…
UBS is the first major bank involved in stock listings to face such a suspension in the cityHelping firms to list is big business in Hong Kong, which was last year’s top IPO destination worldwide Hong Kong’s securities regulator banned UBS from leading initial public offerings (IPOs) in the city for a year, while fining it and rivals including Morgan Stanley a combined $100 million for due diligence failures on a series of IPOs. UBS is the first major bank involved in stock listings to face such a suspension in the city. The $100.2 million in fines are the toughest…
The face of Zambian banking, National Savings Bank (Natsave), in its quest for digital transformation and financial inclusion, on 13 March inked a strategic partnership agreement with Mastercard. The deal concerns a successful rollout of the famous Mastercard Chip and PIN prepaid and debit cards which align to business and personal needs in an evolving technological world. The deal puts Natsave on the scoreboard of banks that are not only providing transactability but are selling security. A very strategic move for Natsave as it aligns with the need for a digitised payment ecosystem in Africa’s second largest copper producer. The…
Central Bank in Africa’s second largest copper hotspot, Zambia on 14 March sold K746 million (circa. USD$83.3 million) worth of short dated government securities. Eighty percent (80%) of bids totaling K909 million were absorbed. The auction was heavily skewed in to the 1 year that was priced at 23.57% with 22.5% accounting for K205 million was in the 9 months tenor at 23%. The term structure of interest rates was unchanged from last auction. With a billion Kwacha in aggregate interbank current account balance, liquidity skews in the hands of very few banks continues to characterize the Zambia money markets.…
The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) on 12 March priced a USD$4.5 billion five-year global benchmark. This is the IBRD’s first issuance this year, and its largest 5yr USD global benchmark since 2016. Book orders were in excess of USD$6.6 billion in the oversubscribed offer with over 120 orders from a total of 31 investor countries represented by central banks and official institutions. Other investors included banks treasuries, corporates, asset managers, as well as pension and insurance funds. Joint lead managers for this global bond are BNP Paribas, Citi, J.P. Morgan, and Wells Fargo. The bond…
African currencies have had an interesting run so far as a reflection of frontier market effects of global uncertainty shaping commodity price trajectory. See below currency ranker as extracted from Bloomberg: Winners Egypt has seen increased flows this year the highest since 2014 especially on exchange traded funds making its bourse the second best performing globally as measured by the EGX. These flows have given support to its currency which is the winner YTD all African currencies. Egypt is on a steady path to recovery post the Arab Spring. Its central bank cut rates in February improving sentiment towards assets…
According to a treasury report issued by the Ministry of Finance on 11 March, Zambia’s fiscal deficit for 2018 remained elevated at 7.6%, an infinitesimal decrease from 7.9% (December 2017). Overall budget execution was generally within the programmed level despite the fiscal challenges experienced during the year, the note carried. At K53.4 billion, revenues and grants were above target by 3.7% whose key drivers were continued positive performance of some domestic tax revenue categories such as value added tax. Compared to 2017, domestic revenues rose by 7.6% and reached K52.8 billion. This was mainly driven by increased tax compliance which…
Africa’s copper producer, Zambia’s external debt position rose to USD$10.05 billion as at December last year from USD$9.51 billion in September 2018. This compares to USD$8.74 billion a year earlier in 2017. This was contained in an economic highlight note by the Finance Ministry on 11 March. Drivers of the increase was increased draw downs and disbursements on previously contracted loans for infrastructure program. These the Minister pointed to supporting economic diversification and structural transformation. External debt service during the period was USD$759.9 million and government guaranteed debt stood at USD$1.3 billion. Domestic debt stood at K58.3 billion at the…