Story of the Day:
Three weeks into July 2020 bond trading on the LuSE, we do not see a change in our frequent pattern of the bond market completely dominating the equities market. Hoping week four like we’ve seen in previous months the penultimate week or final week have a magnificent turn of events for the equities market. This week recorded a score of 99% on the bond market to 1% on the equities side. Read more
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Rudra Copper Limited Managing Director Siddharth Patel says the mine plans to be the first in Zambia to be exacting copper and cobalt and exporting its finished products. Mr Patel plans to do the same for the $20 million avocado project where he wants to be exporting finished products from the fruit. Read more: The Independent Observer
The legal framework guiding debt management levels in Zambia needs to be revised as it has gaps and weaknesses, the Consumer Unity and Trust Society (CUTS), a consumer body, said on Wednesday. Read more: News Ghana
Zamtel incurred losses of over K4 billion during the financial year ending December 31, 2018, due to excessively high distribution and administration costs compared to low revenues generated during the same period, says the latest Auditor General’s Report. Read more: News Diggers
The Economics Association of Zambia and the Luapula Provincial Administration are considering a partnership to launch the Citizens Entrepreneur Development Programme. Read more: ZNBC
Government says it will do everything possible to improve the Diary sector as it has the potential to drive the country’s economy. And Minister of Commerce Trade and Industry Christopher Yaluma says the Coronavirus is one of the major concerns to government as it has negatively affected developmental programmes and people’s lives. Read more: Lusaka Times
The Zambia Development Agency (ZDA) says the low foreign direct investment (FDI) inflows is an opportunity for local enterprises to develop and ensure economic sustainability. ZDA chairperson Fisho Mwale said there is need to look inward in the wake of low FDI, which has been affected by the coronavirus. Read more: Zambia Daily Mail
International Business and Finance
The growing divide between China and the U.S. is expected to accelerate, disrupting long-running economic ties and forcing investors to reassess their view of global markets. Tensions escalated this week after the U.S. claimed two Chinese hackers were targeting American companies working on virus research and were stealing information from companies around the world. Read more: CNBC
South Korea’s economy has recorded its worst performance in more than 20 years amid plummeting exports as a result of the coronavirus pandemic. Asia’s fourth-largest economy contracted 2.9% year-on-year in the April-June period, the Bank of Korea said, after a fall of 1.3% in the first quarter, putting the country into recession for the first time in around two decades. Read more: The Guardian
Electric car maker Tesla has shrugged off the economic upheaval caused by the pandemic to report its fourth quarterly profit in a row. The California company earned $104million in the three months to 30 June, with the growth setting it on course for inclusion in the S&P 500. Read more: BBC News
Microsoft on Wednesday reported $38 billion in revenue for the three months ended in June — up 13% from the same period in the prior year and well above the $36.5 billion Wall Street analysts had expected. Earnings for the quarter were $1.46 per share, again handily beating analysts’ projection of $1.34 share. Read more: CNN
America has embarked on the long road to recovery following the pandemic lockdown, but the path back to a healthy economy is littered with obstacles, according to Goldman Sachs’ CEO. Read more: CNN
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In 39 trades recorded yesterday, 39,433 shares were transacted yielding a market turnover of K45,968. A share price loss of K0.02 was recorded in Standard Chartered Zambia. Trading activity was also recorded in Copperbelt Energy Corporation, Lafarge, Standard Chartered Zambia, Zambian Breweries and Zambeef. The LuSE All Share Index (LASI) closed at 3,892.10 points, 0.20% from its previous close of 3,899.76 points. The market closed on a capitalization of K55,761,437,208 including Shoprite Holdings and K21,522,231,228 excluding Shoprite Holdings.
Chart of the Day: