Story of the Day:
Despite the tough business terrain, there are still opportunities in Zambia for businesses and individuals. This is not to say that the Zambian economy hasn’t been hit hard by the current Covid-19 pandemic but going forward, we as Zambians need to be compelled to redirect our path and unleash abundant opportunities for sustainable growth and opportunities. Read more
Local Business and Finance Sponsored By Liquid Telecom
Inflation pressures have persisted in the second quarter of 2020, with the year- on-year (annual) inflation rate for May 2020 increasing to 16.6%, up from 15.7% recorded in April 2020. Read more: Zambian Business Times
Government has threatened to cancel mining licenses for all manganese mines in Luapula province that have abandoned their sites giving way to illegal mining. Mines Minister Richard Musukwa says government has noted with concern that most manganese license holders are not on site paving way for thousands of illegal miners to take over these mineral rich sites. Read more: ZNBC
THE Zambia Export Development Fund (ZEDEF) has bemoaned the low uptake of US$3 million revolving fund by small and medium enterprises (SMEs) that are failing to access the export market. Read more: Zambia Daily Mail
The Economic Association of Zambia (EAZ) says Zambia must change its trade narrative for it to prosper economically. Read more: The Independent Observer
Mining expert Professor Peter Chileshe has predicted a rough period for copper trading within the next 6 months due to the global recession. Professor Chileshe has since noted the need for additional propping up of copper prices from the Chinese trade in manufactured goods to be complimented by European and North American consumption. Read more: Zambian Observer
International Business and Finance
US gross domestic product, the broadest measure of the American economy, shrank by an annualized rate of 5% between January and March. A preliminary report estimated the first-quarter economy shrank by 4.8%. It was the worst performance for the US economy since the final quarter of 2008. Read more: CNN
Oil trimmed its biggest monthly advance on record as crude was swept up in the broader negative sentiment around deteriorating U.S.-China relations, even as historic supply cuts tighten the market. Read more: Bloomberg
South Africa is planning projects worth $20.5 billion in sectors such as transport, energy and water as it looks to drive an economic recovery from the coronavirus crisis, a top official in the governing African National Congress (ANC) said on Wednesday. Read more: Reuters
Nigeria’s central bank unexpectedly cut its benchmark lending rate to 12.5% from 13.5%, the central bank governor said on Thursday, to stimulate growth in Africa’s largest economy in the face of the coronavirus pandemic. Read more: Reuters
Capital Markets Report Sponsored By ZCCM-IH
In 24 trades recorded yesterday, 5,168,994 shares were transacted yielding a market turnover of K39,284,354. A share price loss of K0.40 was recorded in Zambia Breweries. The LuSE All Share Index (LASI) closed at 4,024.34 points, 1.25% down from its previous close of 4,074.52 points. The market closed on a capitalization of K56,336,993,780 including Shoprite Holdings and K22,097,787,800 excluding Shoprite Holdings.
Chart of the Day: