Story of the Day:
Zambian Breweries contributed just under K 6 billion of value to the national economy in 2019, according to a new report launched today by global consultancy Ernst & Young (EY).
The brewing company added around K1 billion to the country’s GDP besides supporting over 80,000 jobs – equivalent to K164 million in labour income – and contributing K1.6 billion to government’s tax revenue during the period under review. Read more
Local Business and Finance Sponsored By Liquid Intelligent Technologies
Zanaco reported a K472.2 million (x3.8 amplification of 1H20’s earnings). This exceeds the banks FY20 after tax profits by 125.1% and a level that no FI has flirted with in history save Stanbic Zambia which is a few thousands of Kwacha ahead. Read more: The Business Telegraph
Absa PLC in 2Q21 demonstrated both greater revenue momentum and cost efficiency. According to financial statements published in the press, the banks after tax earnings levitated to K296.8 million (5x compared to a year ago) after a strong 2Q21 rebound to K237.4 million for the quarter. Read more: The Business Telegraph
Zambia’s economy showed resilience in the first year of the COVID-19 pandemic by attracting over US$500 million in investments, amassing US$4 billion in trade volumes, and racking up a US$4 billion trade surplus with China in 2020. Read more: The Southern Times
Articles of stone, non-alcoholic beverages and cement accounted for the increase in non-traditional exports (NTEs) to K6.2 billion in June from K4.1 billion in May. Products made from granite, natural limestone, sandstones, marble, pebble stones, slates and quartzites fall under articles of stones. Read more: Zambia Daily Mail
International Business and Finance
Airtel Africa has inked a deal to sell roughly a 7.5% stake in its mobile money unit to Qatar Holding LLC, an affiliate of Qatar Investment Authority (QIA), for around $200 million. This is the latest in a spate of fundraising activities by Sunil Mittal-led Bharti Airtel to cut its debt and invest in network. Read more: Economic Times
Profits at banking giant HSBC more than doubled in the first half of the year as it benefited from an economic rebound in Britain and Hong Kong. Europe’s biggest bank by assets saw pre-tax profit for the period rise to $10.8bn, compared to $4.3bn for the same time last year. Read more: BBC News
Goldman Sachs has increased its salaries for younger bankers following complaints of long working hours. It is understood that first-year investment bank analysts globally will get a pay rise this year to $110,000 from a previous $86,000. This year, a group of young Goldman Sachs bankers complained of 95-hour working weeks and and asked for their working week to be capped at 80 hours. They said conditions were “inhumane”. Read more: BBC News
Amazon was fined 746 million euros ($880 million) by Luxembourg authorities over allegations it flouted the EU’s data protection rules, the online retail giant said Friday. Read more: CGTN
Capital Markets Report Sponsored By ZCCM-IH
In 20 trades recorded on Friday, 19,739 shares were transacted resulting in a turnover of K30,062. Share price gains were recorded in Copperbelt Energy Corporation of K0.13 and in Zanaco of K0.85. Trading activity was also Airtel, Investrust, Lafarge, Standard Chartered Zambia and Zambeef. The LuSE All Share index (LASI) closed at 4,682.42 points, 1.25% up from its previous close of 4,624.08 points. The market closed on a capitalization of K61,176,243,852 including Shoprite Holdings and K26,393,558,412 excluding Shoprite Holdings.
Chart of the Day: