Story of the Day:
In the final week of May 2021 and beginning of June bond trading, only three days recorded trades of which Wednesdays’ trading was the best performance for the week. Bonds of total face value of K507,303,000 were transacted in 21 trades, yielding a market value sales of K262,256,000. Read more
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The bourse in Zambia has shrugged off losses, rallying to 13-month high fuelled by positive global sentiment. The Lusaka Securities Exchange All Share Index – LASI recovered 14.24% from a November 2020 troughs of 3,779.72 to 4,292.98 to date. With the global recovery fuelled by increased stimulus by reserve banks especially the US Federal reserve that has actively tapered the market significantly which has resulted in cash flush positions forcing fund managers to search for yield. Read more: The Business Telegraph
The Bank of Zambia (BoZ) says it expects the country’s inflationary pressures to begin subsiding following the excess supply of maize in view of a good crop harvest. BoZ Deputy Governor -Operations Francis Chipimo notes that last month’s annual inflation increased to 23.2% from 22.7% in April owing to past sustained depreciation of the Kwacha and low supply of some food items. Read more: ZNBC
The Energy Regulation Board (ERB) has dispelled rumours circulating on social media suggesting that a decision has been made to increase electricity tariffs and fuel prices by 15 – 20% respectively after the General election. Read more: ZNBC
Nitrogen Chemicals of Zambia (NCZ) has finished distributing 10,000 metric tonnes of D Compound fertiliser for Lusaka Province ahead of the 2021/2022 farming season. The company was awarded the contract under the Farmer Input Support Programme (FISP). Read more: Zambia Daily Mail
International Business and Finance
Zimbabwe is hoping for economic rebound this year as Finance Minister Mthuli Ncube expects the economy to grow by 7.8%. For two consecutive years, the country’s economy has been shrinking. Even before the pandemic hit, Zimbabwe’s economy had contracted by 6% in 2019. Read more: Africa News
The UK economy grew 2.3% in April, its fastest monthly growth since July last year. Shoppers spent more on the High Street as non-essential shops reopened, and people bought more cars and caravans. Despite the surge in activity, the UK economy is still 3.7% below its pre-pandemic peak. Read more: BBC News
Didi, China’s giant ride-hailing company, filed paperwork for an initial public offering in the United States with the Securities and Exchange Commission on Thursday. The company, which describes itself as the world’s largest mobility platform, offers ride hailing, taxi and carpooling services in China and other countries, including Brazil and Mexico. Didi is also investing in autonomous driving. Read more: CNN
President Joe Biden and leaders of the G-7 group of nations will publicly endorse a global minimum corporate tax of at least 15% today, one piece of a broader agreement to update international tax laws for a globalized, digital economy. The leaders will also announce a plan to replace Digital Services Taxes, which targeted the biggest American tech companies, with a new tax plan. Read more: CNBC
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In 34 trades recorded yesterday 15,296 shares were transacted resulting in a turnover of K22,128. A share price loss was recorded in PUMA of K0.26. Trading activity was also recorded in Airtel, BATA, Investrust, Madison Financial Services, National Breweries, Standard Chartered Zambia and Zambia Sugar. The LuSE All Share index (LASI) closed at 4,264.12 points, 0.71% down from its previous close of 4,292.98 points. The market closed on a capitalization of K58,808,767,411 including Shoprite Holdings and K24,564,126,636 excluding Shoprite Holdings.
Chart of the Day: