Story of the Day:
Zambia has in the last decade or so intensified its push to achieve universal financial inclusion, demonstrated through the launch of the National Financial Inclusion Strategy 2017-2022 (NFIS) and various financial literacy initiatives like Financial Literacy Week. The NFIS was developed with support from the World Bank to create a road map for Zambia in its quest to raise the level of financial inclusion from 40% to 80% by 2022. Read more
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Zambian inflation accelerated for the second straight month in October. Consumer prices rose 16% from a year earlier, compared with 15.7% in September, Mulenga Musepa, the interim statistician general at the Zambia Statistics Agency, said in a virtual briefing. Costs increased 1.3% in the month. Read more: Bloomberg
Canadian copper miner First Quantum Minerals sees no negative impact on its operations from a potential default in Zambia, its chief financial officer said on Thursday. Read more: Nasdaq
Moodys Investor Services this week on 27 October maintained a ‘Ca’ rating despite analysts expectations of a selective default as other rating agencies. A week ago, Standards and Poor’s (S&P) lowered the copper producers fiscal rating to Selective Default (SD) given look default risks and fiscal fragilities. Read more: The Business Telegraph
Zambia Railways Limited (ZRL) is engaging authorities in the Democratic Republic of Congo to start transporting bulk Cargo into that country by rail. ZRL Board Chairman Dr Wala Chabala said Congo has a yearning market in bulk cargo transport which will make good business for the company. He also disclosed that ZRL wants to collaborate with TAZARA to start moving bulk Cargo on its railway network. Read more: ZNBC
The judiciary has been challenged to quickly dispose off the court case concerning the liquidation of Konkola Copper Mines (KCM). Mine Workers Union of Zambia (MIZ) President Joseph Chewe said anxiety among employees is growing as they want to know the future of KCM. Read more: The Independent Observer
International Business and Finance
The United States’ gross domestic product — the broadest measure of economic activity — grew at an annualized and seasonally adjusted rate of 33.1% between July and September. This was a faster rate of expansion than economists had predicted. It was also the fastest growth rate since the government began to track quarterly GDP data in 1947. Read more: CNN
Amazon said Thursday that during the three months ending September 30 its sales grew 37% compared to the same period last year, to $96.1 billion, and profit increased 197% to $6.3 billion. Read more: CNN
Oil tumbled to its lowest level in nearly five months on Thursday, as a swathe of new lockdown rules around Europe and a persistent overhang in US inventories of unused fuel worsened concerns about the outlook for demand next year. The value of a barrel of oil has dropped by 10% in the last two trading days alone, bringing the losses for October to nearly 11%, the largest one-month drop since March’s 54% collapse. Read more: Business Insider
The European Central Bank hinted at more monetary stimulus on Thursday, as the two largest economies in the region prepare for a second national lockdown. The bank decided to keep its rates and wider monetary policy unchanged, but suggested that additional policy action in the euro zone could come as soon as December. Read more: CNBC
South Africa’s government said on Thursday it wanted its national airline flying again in the first half of next year, after giving it a 10.5 billion rand ($650 million) bailout in the mid-term budget. Read more: Reuters
The International Monetary Fund (IMF) has said continuing government support is “essential” for the struggling UK economy to recover. The UK can afford it, and support is needed to see it through the coronavirus pandemic and the Brexit transition, the IMF said. Read more: BBC News
Capital Markets Report Sponsored By ZCCM-IH
In 2 trades recorded yesterday, 104 shares were transacted yielding a market turnover of K4,026. Trading activity was recorded in ZCCM. The LuSE All Share Index (LASI) maintained its close at 3,809.22 points, as there were no share price movements. The market closed on a capitalization of K55,884,340,845 including Shoprite Holdings and K21,645,134,865 excluding Shoprite Holdings.
Chart of the Day: