Story of the Day:
As we come to the close of July 2020 bond trading, once again the equities market’s glory was short lived. Our hopes of the final week of July having a massive turnaround for the equities market were in vain as the bond market completely dominated the equities market recording a score of a 100%. Thus week four of July was the best performing week for the equities market. Read more
Local Business and Finance Sponsored By Liquid Telecom
Zambia has recorded a trade surplus valued at about K1.6 billion in June 2020. This surplus however is on a reduced level from a surplus of K3.9 billion recorded in May 2020. On a month on month basis, the surplus decreased by about 60%. Read more: Zambian Business Times
Stanbic Zambia’s first half after tax earnings rallied 4.2% to K173.1 million year on year as Africa’s second largest copper producers largest financial institution by asset size and profitability adjusted for sovereign risks. Read more: The Business Telegraph
Lusaka Securities Exchange listed Zanaco bank’s first half revenues revealed exemplary performance across all income lines. The big strong reliable giant grew its total income by 36.1% year on year to K950.1 million supported by a strong interest income trajectory which rallied 30.1% to K848.3 million and a non interest earnings base. Read more: The Business Telegraph
Increased agricultural exports in June resulted in Zambia’s non-traditional exports (NTEs) rising by 11.3 percent to over K2.51 billion from about K2.2 billion in May. Zambia Statistics Agency (ZamStats) data indicates that agricultural products accounted for a share of 34.6 percent of Zambia’s NTEs compared to 22.8 percent in May. Read more: Zambia Daily Mail
The Kitwe High Court has discharged an interim injunction it granted to Konkola Copper Mines (KCM) which sought to stop Copperbelt Energy Corporation (CEC) from restricting power supply to the mining giant. This now means CEC can continue restricting power to KCM as it pushes for the mining firm to settle its debt. Read more: Lusaka Times
Zambian Ambassador to Belgium, Professor Esther Nkandu says Zambia is focusing on ways of increasing trade with other countries. Professor Nkandu says this is why the country is ensuring it promotes value addition on products that are entering the European Commission and other countries. Read more: ZNBC
International Business and Finance
HSBC plans to speed up job cuts after interim profits plunged and the bank said bad loans linked to the coronavirus could reach $13billion. HSBC boss Noel Quinn said it will “accelerate” an earlier restructuring plan which included axing 35,000 jobs. Read more: BBC News
Twitter on Monday disclosed that it expects to lose as much as $250 million for using personal information users provided for security purposes to target advertising instead, after receiving a draft complaint from the Federal Trade Commission. The stock dropped about 1% after hours on the announcement. Read more: CNBC
Activity at China’s factories just grew at the fastest pace in nearly a decade, signaling that the country’s economic recovery is continuing to pick up momentum. A private survey of manufacturing activity rose to 52.8 in July, up from June’s 51.2 as factories in the country picked up new orders. That’s the quickest rate since January 2011. Read more: CNN
Eritrea on Tuesday explained why it has not signed up for the African Continental Free Trade Area, AfCFTA. The Horn of Africa nation remains the only country yet to sign the agreement let alone deposit instruments of ratification as of July 2020. Read more: Africa News
Capital Markets Report Sponsored By ZCCM-IH
In 10 trades recorded yesterday, 15,501 shares were transacted yielding a market turnover of K28,773. Trading activity was recorded in Airtel, Copperbelt Energy Corporation and Lafarge. The LuSE All Share Index (LASI) maintained its close at 3,865.40 points, as there were no share price movements. The market closed on a capitalization of K55,645,209,233 including Shoprite Holdings and K21,406,003,253 excluding Shoprite Holdings.
Chart of the Day: