Story of the Day:
In a business environment where financial information is readily available and easily accessible, raising capital tends to be much easier than an environment where there is non. It is actually a win-win situation for both the lending institutions or investors as it minimizes the problems that come with asymmetric information. Read more
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The Bank of Zambia (BOZ) has reiterated its support to village banking and savings groups, saying they play an important role in providing community-based financial services although informally. In a statement on Wednesday, the Central Bank stated that financial services are delivered through the formal and informal channels. Read more: Zambia Reports
The Development Bank of Zambia (DBZ) and Prospero Zambia have signed a memorandum of understanding to promote business among Small Medium Enterprises-SMEs. Speaking during the signing ceremony, Prospero Zambia Chief Executive Officer James Blewett said the development will enable SMEs to better market themselves to investors. Read more: ZNBC
Atlas Mara Managing Director James Koni has called on Zambians to embrace the use of digital platforms to conduct various business transactions during the covid-19 period. Mr. Koni says the use of digital solutions will enhance efficiency and quality service delivery. He was speaking during the signing of the tripartite memorandum of understanding with Lafarge and Nkwashi. Read more: ZNBC
The kwacha is expected to continue depreciating against major currency convertibles, given the heightened demand for dollars on the local market, coupled with dwindling supply, market data shows. According to financial market players, the kwacha is set to maintain a weak position, depreciating further beyond the K20.00 per dollar mark. Read more: News Diggers
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The Federal Reserve committed Wednesday to do more to help the US economic recovery. The Fed does not expect to see inflation pick up for years, and it is willing to keep rates at zero even after it does. Stocks initially surged after the Fed released its post-meeting statement and its latest economic forecast, showing it will keep interest rates at zero at least through 2023, as expected.Read more: CNBC
The damage to the global economy this year will be less than previously expected, but still “unprecedented”, a leading international body says. The Organisation for Economic Cooperation and Development (OECD) now predicts a decline of 4.5% in 2020, versus the 6% drop forecast in June. Read more: BBC News
Investment between the United States and China tumbled to a nine-year low in the first half of 2020, hit by bilateral tensions that could see more Chinese companies come under pressure to divest U.S. operations, a research report said. Read more: Reuters
The Bank of Japan kept monetary policy steady on Thursday and slightly upgraded its view on the economy, suggesting that no immediate expansion of stimulus was needed to combat the coronavirus pandemic. Read more: Reuters
New Zealand’s economy suffered a record contraction in the second quarter as a lockdown to halt the spread of the coronavirus kept people at home and shuttered most businesses. GDP shrank by 12.2% in the April-June quarter from the previous quarter. The economy was 12.4% smaller compared with a year earlier. Read more: Market Watch
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In 3 trades recorded yesterday, 14,275 shares were transacted yielding a market turnover of K22,701. Trading activity was recorded in Lafarge. The LuSE All Share Index (LASI) maintained its close at 3,834.35 points, as there were no share price movements. The market closed on a capitalization of K55,510,536,355 including Shoprite Holdings and K21,271,330,375 excluding Shoprite Holdings.
Chart of the Day: