Story of the Day:
The headline Purchasing Managers Index dropped to 34.8 in May from the previous record low of 37.3 posted in April. The reading signaled a severe deterioration in the health of the Zambian private sector. PMI readings above 50 points signal an improvement in business conditions on the previous month, while readings below 50 points show deterioration. Read more
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Government has reiterated that re-launching of the national airline will go ahead despite the current trends in the airline sector which has seen a reduction of air traffic. Ministry of Transport and Communication Permanent Secretary Misheck Lungu told Phoenix News that now is the best time for Zambia to implement planned re-launch of Zambian Airlines as most airlines are grounded. Read more: Zambian Observer
The National Road Fund Agency (NRFA) has collected over K425 million from January 2020 to date in all the 34 tolling collection points across the country. Read more: ZNBC
The Common Market for Eastern and Southern Africa (COMESA) has eased guidelines on the movement of goods and services across the region. Read more: Zambia Daily Mail
The Zambia Development Agency – ZDA has initiated a country wide tour aimed at monitoring of various enterprises registered under the Agency to ensure compliance with incentives given as well as optimization of revenue collection. Read more: Zambian Business Times
The government has encouraged players in the telecommunication sector with the capacity to participate in setting up a fourth mobile service provider to take part in a bid to obtain a license. Read more: Lusaka Times
International Business and Finance
UK and EU leaders have said new momentum is needed in the Brexit negotiations. Boris Johnson said there was a “very good” chance of getting a trade deal by December. He said he saw no reason why it cannot be “done in July”, after the sides agreed to intensify talks next month. Read more: The Guardian
U.S. firms can work with Huawei on setting standards for next-generation technologies, the Department of Commerce said Monday. Read more: CNBC
The EU now looks set to charge Amazon for anti-competitive behaviour. This could cost Amazon a lot of money and could alter the shopping experience it offers customers. Read more: BBC News
The US Federal Reserve said Monday it would buy a broad basket of corporate bonds from the secondary market through its emergency lending program, based on an index the central bank had created. The move is aimed at supporting the flow of credit to large companies. Read more: Market Watch
Apple announced on Monday that its App Store facilitated an estimated $519 billion in billings and sales in 2019, according to a new study commissioned by the company. Read more: Apple
Capital Markets Report
There were no trades recorded yesterday. The LuSE All Share Index (LASI) maintained its close of 3,971.11 points, as there were no share price changes. The market closed on a capitalization of K56,105,319,918 including Shoprite Holdings and K21,866,113,938 excluding Shoprite Holdings.
Chart of the Day: