Story of the Day:
In the first week of June 2020 bond trading on the LuSE. We revert back to our old pattern, as the bond market eclipses the equities market. The equities markets glory was short lived as it recorded a score of 8% to 92% as compared to what we saw last week closing the month of May with a magnificent score of 63%. Read more
Local Business and Finance Sponsored By Liquid Telecom
The Bank of Zambia sold K1.3 billion in treasury bills in a debt sale that was oversubscribed with bid cover ratio at 1.91. Read more: The Business Telegraph
The Ministry of Finance has started preparations for the 2021 National Budget. The Ministry has also started preparations for the 2021-2023 Medium Term Expenditure Framework. The process is being done along side the current process of revising the 202 National Budget which has gravely been impacted by the effects of Covid-19 on the domestic and international economy. Read more: ZNBC
Commerce, Trade and Industry Minister Christopher Yaluma says Zambia has made progressive strides towards attaining its industrialization agenda. Mr. Yaluma says the setting up of industries by several investors across the country is an indication that Zambia is heading in the right trajectory towards increasing foreign exchange through exports and value addition. Read more: ZNBC
The Bank of Zambia (BoZ) has approved K2.3 billion for microfinance institutions and commercial banks to help businesses remain afloat amid the coronavirus impact. Read more: Zambia Daily Mail
International Business and Finance
OPEC and all but one of its allied countries agreed on Saturday to extend record oil production cuts through July. Read more: CNN
The US labour market improved unexpectedly in May raising hopes that economic damage tied to the pandemic will be less harmful than feared. The unemployment rate fell to 13.3%, down from 14.7% in April, as businesses started hiring again. Read more: BBC News
China’s exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as global growth stalls. Read more: CNBC
Huawei will launch a fightback on Monday to try to preserve its role in Britain’s 5G networks, urging Boris Johnson not to “overestimate the risk of security and forget the economic impact” of delaying the rollout of full-fibre broadband. Read more: Financial Times
Emerging-market currencies will see little reprieve over time even as the reopening global economy eases investor fears and the U.S. dollar weakens, according to strategists at Barclays Plc. Read more: Bloomberg
First Deputy Governor of the Bank of Ghana (BoG), Dr Maxwell Opoku-Afari says the bank is working to establish a sandbox to encourage innovation in the market, and also test concepts such as a Central Bank Digital Currency. Read more: Business Insider
Capital Markets Report Sponsored By ZCCM-IH
There were no trades recorded on Friday. The LuSE All Share Index (LASI) maintained its close at 4,013.14 points, as there were no share price movements. The market closed on a capitalization of K56,288,243,762 including Shoprite Holdings and K22,049,037,782 excluding Shoprite Holdings.
Chart of the Day: