Story of the Day:
Internal controls are vital to the success of any company because they ensure reliability of financial records and reporting, compliance with laws and regulations, prevent companies from being exposed to fraud or theft, and support the achievement of corporate objectives. Read more
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Zambia, which last year became Africa’s first pandemic-era sovereign defaulter, received a 6.27 billion kwacha ($277 million) dividend payment from its central bank, partly due to gains related to the depreciation of the local currency. Read more: Bloomberg
Washington based lender the International Monetary Fund – IMF in the coming weeks is set to approve an increase in Special Drawing Rights – SDRs for its members totalling an additional $650 billion. For Zambia, the development once approved does spell hope for an opportunity to shore up decade low foreign exchange reserves with an additional $1.3 billion accounting for 0.02% the Southern African nations SDR quota. Read more: The Business Telegraph
As the Lafarge Zambia stock rallied 28.0% in the week beginning June 21 as traders seek price discovery in the labyrinth of uncertainty following an array of corporate actions. Lafarge has faced a series of hurdles such as a pricing fixing fine by the Zambian competition regulatory authority which it has refuted and commenced a process of appealing while frail economic conditions such as currency weakness coerced the cement giant into hiking prices to cushion rising manufacturing costs. Read more: The Business Telegraph
Government has released K15 million to management at the Tanzania Zambia Railways Authority (TAZARA) in Mpika District to pay workers’ salaries. TAZARA Workers Union President Bedwin Malowa says he’s happy that government has fulfilled its promise and workers have since started receiving payment. Read more: ZNBC
International Business and Finance
The United Nations Economic Commission for Africa (UNECA) announced an initiative to assist African countries to craft national African Continental Free Trade Area (AfCFTA) Agreement implementation strategies in line with the challenges posed by the COVID-19 pandemic and climate change. Read more: CGTN
Ghana has finally been removed from the European Union’s (EU) money laundering blacklist. The EU removed Ghana from the list of countries that have failed to put measures in place to fight money laundering after global money laundering and terrorist financing watchdog, Financial Action Task Force (FATF) said that Ghana was no longer under its increased monitoring process. Read more: Business Insider
Amazon and Google are under investigation over concerns fake five star reviews on their websites could be misleading shoppers. The Competition and Markets Authority is also worried that “law-abiding businesses” who sell over Amazon and Google may be losing out to firms using false recommendations. Read more: BBC News
US prices rose yet again in May and a key measure of inflation hit new multi-year highs. The price index tracking personal consumption expenditure, or PCE, climbed 3.9% in the year ending May, the Bureau of Economic Analysis reported Friday. It was the highest level since August 2008 and exceeded April’s 3.6% level. CNN
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In 35 trades recorded on Friday, 37,604 shares were transacted resulting in a turnover of K110,263. A share price gain was recorded in Lafarge of K1.39. Share price losses were recorded in Copperbelt Energy Corporation of K0.15 and in Standard Chartered Zambia of K0.09. Trading activity was also recorded in Airtel, BATA, National Breweries, Pamodzi, PUMA, ZCCM, Zambeef, Zanaco and Zambia Sugar. The LuSE All Share index (LASI) closed at 4,424.95 points, 0.60% down from its previous close of 4,451.44 points. The market closed on a capitalization of K59,514,539,889 including Shoprite Holdings and K25,269,899,115 excluding Shoprite Holdings.
Chart of the Day: