Story of the Day:
Enygma Ventures is delighted to announce its latest investment into Brown and Ayo, an aspirational lifestyle hair brand, focused on natural hair styles and trends for black women, in South Africa. Read more
Local Business and Finance Sponsored By Liquid Intelligent Technologies
Barely two months after levitating from the doldrums to a 26 month high of 50.1 in April, Zambia’s Purchasing Managers Index – PMI is back deeper in contraction at 49.3 for the month of June as the third wave deepens. This represents 0.4 points lower than May’s 49.7. (50 is the benchmark for expansionary ->50 and contractionary -<50 private sector activity). Read more: The Business Telegraph
Mining conglomerate ZCCM-IH saw a sharp decline in profits from K448 million to 307 million for the nine month period ended 31st December 2019. This was compared to the period 31st March 2019 year end. Read more: Lusaka Times
Zambia Institute of Purchasing and Supply outgoing President Chibwe Mwelwa says the 2020 public procurement Act will unlock economy difficulties that the country is faced with. Mr. Mwelwa says the act shifts majority ownership of running businesses from foreign hands to Zambians. He says this will allow the country to return the forex. Read more: ZNBC
Over 14 million Kwacha has been injected into Zambia China Mulungushi Textiles Limited in Kabwe, Central Province to boost operations at the ginnery. The Zambian government has pumped in 10 million Kwacha while the Chinese government has invested 4.5 million Kwacha into the factory. Read more: ZNBC
International Business and Finance
The coronavirus pandemic has destroyed 22 million jobs in wealthy countries, according to the Organization for Economic Cooperation and Development. In a report Wednesday warning of the risk of a rapid rise in long-term joblessness, the Paris-based organization said that employment across OECD countries is not expected to recover to its pre-pandemic level before 2023. Read more: CNN
China’s top executive body surprised investors late Wednesday by saying the central bank would stimulate the economy by cutting the amount of funds banks need to hold in reserve. “We think this policy signal suggests the economy likely slowed in June,” Zhiwei Zhang, chief economist, Pinpoint Asset Management, said in a note. He said policymakers likely already know what retail sales and other macroeconomic data for June look like. Read more: CNBC
Ghana is planning to issue green and social bonds of up to $2 billion by November. It’s also planning to borrow up to $5 billion on the international market. Finance Minister Ken Ofori-Atta says the cash will be used to refinance debt used for social and environmental projects and pay for educational or health programs. Read more: CGTN
In partnership with the International Bank of Somalia (IBS Bank), Visa has launched Somalia’s first Visa card payment service. The two entities said the partnership would open up Somalia to cashless payment services for international and local transactions in a joint statement. Read more: Business Insider
Capital Markets Report Sponsored By ZCCM-IH
In 10 trades recorded yesterday, 500,488 shares were transacted resulting in a turnover of K602,352. Share price gains were recorded in Zambeef of K0.05 and in Zanaco of K0.15. Trading activity was also recorded in Airtel, First Quantum Minerals, Lafarge, Pamodzi, and ZCCM. The LuSE All Share index (LASI) closed at 4,664.45 points, 1.14% up from its previous close of 4,611.38 points. The market closed on a capitalization of K60,559,778,426 including Shoprite Holdings and K26,315,137,652 excluding Shoprite Holdings.
Chart of the Day: