Story of the Day
An Executive Summary of the IMF-GLOBAL FINANCIAL STABILITY REPORT – Navigating The High Inflation Environment
The world economy is experiencing stubbornly high inflation, a challenge it has not faced for decades. Following the global financial crisis, with inflationary pressures muted, interest rates were extremely low for years and investors became accustomed to low volatility. The resulting easing of financial conditions supported economic growth, but it also contributed to a buildup of financial vulnerabilities. Now, with inflation at multidecade highs, monetary authorities in advanced economies are accelerating the pace of policy normalization. Policymakers in emerging markets have continued to tighten policy against a backdrop of rising inflation and currency pressures, albeit with notable differences across regions. Global financial conditions have tightened notably this year, leading to capital outflows from many emerging and frontier market economies with weaker macroeconomic fundamentals. Read more
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Zambia’s central bank was only able to absorb K871.76 million worth of purchasing power of the K1.26 billion appetite in Fridays primaries of the K2.6 billion of assets on offer. Arguably expectations post the Internal Monetary Fund board approval of a $1.3 billion extended credit facility, most players expected the curve to flatten which has not been the case. The term structure of interest rates is currently being driven by complexity posed by offshore behaviour dictated by global monetary policy tightening and uncertainty as to when the graded debt will be fully restructured. Read more: The Business Telegraph
The Energy Regulation Board (ERB) has increased the pump prices of petroleum products. Petrol has been increased by K1.57, while Diesel has gone up by K1.22 Ngwee. Kerosene has been increased by K3.17. Read more: ZNBC
The Zambia Development Agency-ZDA has registered 95 local and foreign investment ventures worth US$1.1 billion in the third quarter of 2022. This investment is expected to create 8307 jobs. ZDA Acting Director General Albert Halwampa says the investment represents a 73.53 percent increase compared to the same period last year. Mr Halwampa explains that last year, ZDA recorded 92 Investment ventures worth US$631 Million in the same period. Read more: ZNBC
National Council for Construction public relations officer Chama Mwansa says the construction sector has seen increased local participation in most construction projects across the country. Mwansa attributed the spike to the increased CDF, saying most local contractors were implementing CDF projects. In an interview, Monday, Chama said from the 20 per cent target, local participation in some projects was now at 50 per cent. Read more: News Diggers
Villagers in Zambia’s rural areas are hoping to raise their farming productivity and make an increased income through a Chinese-aided project that aims to make a positive impact on poverty reduction in the southern African country. The project, namely the Demonstration Village for China-Africa Agricultural Development and Poverty Reduction that was proposed during the 8th Ministerial Conference of the Forum on China-Africa Cooperation held in November last year, will see the establishment of 10 village demonstration centers in the rural parts of Zambia over the next few years. Read more: Xinhua
International Business and Finance
State oil giant Saudi Aramco reported a 39% rise in net income for the third quarter year-on-year, on the back of higher crude prices and tightening global supply. Net income rose to $42.4 billion for the quarter, up from $30.4 billion the previous year and just above expectations. The Saudi company also reported an increase in free cash flow to a record $45 billion from $28.7 billion one year prior and paid out its second-quarter dividend of $18.8 billion. Its third-quarter dividend of the same amount is due to be paid out in the fourth quarter. Read more: CNBC
U.K. cryptocurrency firms and investors have high hopes that new prime minister Rishi Sunak could turn around Britain’s fading crypto aspirations. “Rishi sees the opportunity and potential that crypto has, and wants the U.K. to be a leader in it,” Faes, who also chairs the Fintech Founders network, added. Sunak, a former Goldman Sachs analyst, has on several occasions expressed a positive attitude toward crypto. As the minister in charge of Britain’s finances, he outlined a grand plan to make the country a global crypto hub in April. That included bringing stablecoins within the regulatory parameters and getting the Royal Mint, the official U.K. coin maker, to launch a nonfungible token. Read more: CNBC
The Dow fell nearly 130 points, or 0.4% Monday, but it still ended October up 14% — its best monthly gain since January 1976. The blue chips remain off by almost 10% this year, though. Meanwhile, the S&P 500, which closed down 0.8% Monday, has dropped about 20% in 2022. The tech-heavy Nasdaq finished 1% lower Monday and has plunged 30% this year. But both indexes also had strong Octobers. The Nasdaq rose about 4% while the S&P 500 was up 8%. Read more: CNN
BP has reported a huge profit for July to September due to high oil and gas prices exacerbated by Russia’s invasion of Ukraine. The oil giant made $8.2bn for the period, more than double the profit over the same three months last year. BP said it expected to pay $800m in UK windfall tax this year, a levy introduced by the government in May. Read more: BBC News
Elon Musk has dissolved Twitter’s board of directors – cementing his control over the social media platform. The multi-billionaire will be its chief executive after buying the company last week, ending months of back and forth over the $44bn deal. He has moved quickly to put his mark on the firm, which is used by politicians and journalists around the world. Read more: BBC News
Capital Markets Report
In 69 trades recorded yesterday, 37, 436 shares were transacted resulting in a turnover of K117, 678.13. A share price loss of 0.01 was recorded in BATA.Trading activity was also recorded in Copperbelt Energy Corporation Zambia, Investrust, Chilanga Cement, Standard Chartered Bank Limited, Zambeef and Zanaco as well as CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,233.54 points, 0.18 points down from it’s previous close of 7,233.72. The market closed on a capitalization of K72,417,985,446 including Shoprite Holdings and K37,635,300,006 excluding Shoprite Holdings.
