Story of the Day:
The Industrial Development Corporation has announced that there will be one initial public offering (IPO) for one of its subsidiaries before the end of 2019. Read more
Local Business and Finance
Zambia’s inflation rate remained at a three-year high in October and economic growth slowed, complicating the central bank’s task. Annual inflation rose to 10.7 from 10.5 while the growth forecast for 2019 decreased to 2%. Read more: Bloomberg
According to quarterly financial statement released as at 30 September 2019, Zambia’s largest bank by asset size Stanbic Bank has led the third quarter earnings sprint with a K120million widened gap with its rivals. SBZs after tax YTD earnings headlined K322.3 million (107% growth from K155.9 million a year ago while QoQ profitability grew 134% to K156.2 million). Read more: The Business Telegraph
The Zambian government said on Wednesday that the number of local firms that have shown interest to participate at the second China International Import Expo (CIIE) has gone up this year compared to last year. So far 35 firms have confirmed their participation although the number could be expected to go as high as 40 as some firms have made their own arrangements. Read more: IOL News
Arc Minerals Ltd has completed the first sale of copper concentrate from its Kalaba small scale demonstration plant in Zambia to a locally based Chinese customer at close to the market spot price. Read more: Proactive Investors
Finance Minister Bwalya Ng’andu says the expression of goodwill and willingness by various cooperating partners is a sign that government’s initiative to engage them is yielding results. Read more: ZNBC
Government, Mopani and the mine contractors have resolved to shelve the new Mopani contract business model which seems to disadvantage local contractors and suppliers. The resolution was made during a tripartite consultative meeting held over the new Mopani Contract optimization way of doing business. Read more: ZNBC
Chief Government spokesperson Dora Siliya says Government has paid $40 million for electricity importation from South Africa. Ms Siliya says $10 million was paid last week and a $30 million on Wednesday this week. Read more: Zambian Observer
International Business and Finance
Fiat Chrysler and France’s PSA Peugeot said Thursday they have agreed to merge to create the world’s fourth-largest automaker with enough scale to confront big shifts in the industry, including a race to develop electric cars and driverless technologies. Read more: Washington Times
Samsung’s operating profit plunged 56% in the third quarter compared to last year as the company continues to struggle with sluggish demand for memory chips. But the company said chip sales should pick up in 2020, drawing a line under the prolonged industry downturn. Read more: CNN
Chinese manufacturing activity fell to an eight-month low in October, raising another warning signal as hopes for a temporary truce in the U.S.-China trade talks were dealt a further blow. Read more: Wall Street Journal
The eurozone’s economic expansion continued at a crawl in the three months through September, with little prospect of a quick return to robust growth. Read more: Wall Street Journal
Facebook reported third-quarter earnings Wednesday that beat Wall Street expectations. The company also showed strong user growth in the US and Canada, a key market that previously seemed to be stretched to its limits. Read more: Market Watch
Like many firms, UBS Global Wealth Management is looking to improve its digital financial planning capabilities, eliminate paper, and make it easier for more investors to access financial advice, the firm’s technology executives said on Wednesday . Read more: Investment News
Capital Markets Report
In 8 trades recorded yesterday, 2,370 shares were transacted, resulting in a market turnover of K2,918. Trading activity was recorded in Airtel, Copperbelt Energy Corporation, Zambeef and Zanaco. The LuSE All Share Index (LASI) maintained its previous close of 4,330.56 points as there were no price movements. The market remained on a capitalization of K56,846,537,472 including Shoprite Holdings and K22,607,331,492 excluding Shoprite Holdings.
Chart of the Day: