Story of the Day:
Four weeks into the month of July bond trading on the Lusaka Stock Exchange. This is the third week this month that the bond market has not recorded trades leaving the equities market to completely dominate the bond market recording a score of 100% to 0% which is a complete replica of last week. During the week we see the Kwacha gradually appreciate against the US Dollar as the market closed on an exchange rate of 1 US dollar equivalent to 21.0369 Zambian Kwacha. Read more
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Zambia has in the last two auctions seen strong appetite for its paper with the most recent oversubscribed in the July 23 debt sale. With bids amounting to K2.98 billion, the Bank of Zambia absorbed K1.64 billion of the market appetite concentrated in the 2 to 5 year tenor of the K1.5 billion of assets on offer. Read more: The Business Telegraph
Zambia Gold Company Limited (ZGCL) has accelerated gold explorations at its Kasenseli project in Mwinilunga as it looks to meet the increasing demand for the precious metal. ZGCL, which is a subsidiary of ZCCM-Investments Holdings (IH), has been producing gold and buying the precious metal from small-scale gold miners, with the company producing and buying over 38,320 grams and 29,523.31 grams respectively. Read more: Zambia Daily Mail
The Bank of Zambia (BOZ) has attributed the recent local currency appreciation to various factors, including improved copper price on the international market. Copper is currently selling above US$9,000 a tonne, the highest so far in recent years. The Central Bank explained that the improved copper price has also resulted in more foreign currency inflow. Read more: Zambian Observer
Zambia Railways Limited (ZRL) Northern Region Manager, Obed Galatia has described transporting of over one million tonnes of cargo in the year 2020 midst Covid19 challenges as a huge milestone. “The last achieved a performance of above one million tonnes in 2006, 14 years ago,” Mr Galatia said. Read more: Lusaka Times
International Business and Finance
American Express is the top stock in the Dow so far this year, it reported a quarterly profit of $2.3 billion, easily topping Wall Street’s forecasts. Revenue for American Express came in at $10.2 billion, a 33% jump from the second quarter of 2020 and also ahead of consensus estimates. The stock rose nearly 4% Friday on the news. The stock is up more-than 45% this year, putting AmEx slightly ahead of Goldman Sachs. Read more: CNN
Another high-level meeting between U.S. and Chinese officials — this time in the Chinese city of Tianjin, just outside of Beijing — began with criticism. Chinese Vice Foreign Minister Xie Feng said during talks Monday with U.S. Deputy Secretary of State Wendy Sherman that the two countries’ relationship “is now in a stalemate and faces serious difficulties,” Read more: CNBC
Bitcoin soared on Monday to approach $40,000 for the first time in six weeks, a rally some attributed to traders exiting bets on declines as well as ongoing speculation over Amazon.com Inc.’s potential involvement in the cryptocurrency sector. Read more: Yahoo Finance
U.S. Treasury Secretary Janet Yellen urged lawmakers on Friday to increase or suspend the nation’s debt limit as soon as possible and warned that if Congress does not act by Aug. 2 the Treasury Department would need to take “extraordinary measures” to prevent a U.S. default. Read more: Reuters
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In 44 trades recorded on Friday, 2,517,562 shares were transacted resulting in a turnover of K3,123,161. A share price loss was recorded in Copperbelt Energy Corporation of K0.02. Trading activity was also recorded in FARM PREF, Investrust, Zanaco, ZAFFICO and CEC Africa on the quoted tier. The LuSE All Share index (LASI) closed at 4,638.29 points, 0.16% down from its previous close of 4,645.74 points. The market closed on a capitalization of K60,983,663,974 including Shoprite Holdings and K26,200,978,534 excluding Shoprite Holdings.
Chart of the Day: