Story of the Day:
First Quantum Minerals (FQM) has recorded solid operational and financial performance in the second quarter of 2021 according to the mining company’s global quarterly results.
This achievement puts the mining giant on course to attaining its targeted gross debt reduction of at least US$2 billion next year. Read more
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Zambian inflation was unchanged in July as food price growth that has propelled the headline number over 20% this year remained steady. Consumer prices rose 24.6% from a year earlier, the same as in June. Costs increased 0.3% in the month, compared with 1.3% in June. Food price-growth was unchanged at 31.2% in July and non-food inflation slowed to 17% from 17.1% June. Read more: Bloomberg
General Insurance has made K45 million net profit in the year 2020. Managing Director, Charles Nakhoze says the company grew its turnover by 46 percent in 2020, making it the most profitable insurance company in the country. Read more: ZNBC
Zambia’s economy is set for an economic boost with a direct investment of US$500million from an American Investment Group. The financing is for immediate investment into “beautiful, peaceful and developing Zambia” and will pour into Lusaka as soon as projects are identified and agreements with Government completed. Read more: Lusaka Times
The central bank has started converting details of consumers into a code to prevent unauthorised access to personal banking details in view of rising cybercrimes. Recently, several people have been scammed by all sorts of schemes, resulting in them being swindled out of large amounts of money. Bank of Zambia (BoZ) Governor Christopher Mvunga advised consumers to avoid sharing personal details. Read more: Zambia Daily Mail
International Business and Finance
The US economy in the second quarter expanded at a slower rate than expected but still at its fastest pace since last fall, growing at a seasonally adjusted, annualized rate of 6.5%. In terms of real gross domestic product — the broadest measure of economic activity — the economy has now recovered in that has grown bigger than its pre-pandemic size. Read more: CNN
Customers turned to Amazon and other online platforms during the Covid crisis, leading to record profits for the US giant. But Amazon’s breakneck growth is beginning to level as customers start to return to bricks and mortar shops. Revenue climbed 27% to $113bn in its second quarter, but this missed analysts’ expectations. Amazon shares fell more than 7% in after-hours trade. Read more: BBC News
Asian shares slipped on Friday, with a gauge of regional equities set for its biggest monthly drop since the height of global pandemic lockdowns last March, while the dollar lagged near one-month lows on expectations of continued Fed stimulus. Read more: Reuters
Mastercard Inc reported a second-quarter profit on Thursday that comfortably beat estimates, underpinned by a recovery in global spending as businesses start to reopen and travel shows signs of a rebound. Net income, excluding exceptional items, rose to $1.9 billion, or $1.95 per share, from $1.4 billion, or $1.36 per share a year earlier. Read more: Reuters
Ghana’s Vice President, Dr Mahamudu Bawumia, has said that this is the time African governments must embrace digital currencies to enhance trade in the continent. He was speaking at the fifth Ghana International and Trade and Finance conference in Accra. The theme for the conference was “facilitating trade and trade-finance in AfCFTA; the role of the financial services sector.” Read more: Business Insider
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In 18 trades recorded yesterday, 18,913 shares were transacted resulting in a turnover of K245,043. A share price loss of K0.03 was recorded in Zanaco. Trading activity was also recorded in Airtel, Copperbelt Energy Corporation, Investrust, Pamodzi, Standard Chartered Zambia and SHOP. The LuSE All Share index (LASI) closed at 4,624.08 points, 0.21% down from its previous close of 4,634.01 points. The market closed on a capitalization of K60,921,681,274 including Shoprite Holdings and K26,138,995,834 excluding Shoprite Holdings.
Chart of the Day: