Story of the Day:
With only one day of trading left for September 2019, the fourth week of the month recorded the weakest performance in the same week the Ministry of Finance announced a K106 billion budget for 2020. Equities were down by 85% while the bond market slipped by 25% in sales corporate paper. Read more
Local Business and Finance
China Power Company, one of the firms under China Resource Group, is ready to help Zambia mitigate electricity challenges it is currently faced with. The multi-operational firm also wants to import coffee beans and cotton from Zambian farmers to meet the growing international demand. Read more: Zambia Daily Mail
President Edgar Lungu says government has set aside funds to restructure the Development Bank of Zambia (DBZ) as well as for supporting the sub-regional Centre’s programmes. Read more: Diggers
Zambia’s escalating annual rate of inflation to 10.5 per cent in the month of September will continue to lead to increased cost of living, which would also erode consumers’ purchasing power, says the Zambia Institute for Policy Analysis and Research (ZIPAR). Read more: Diggers
Mealie meal price in Lusaka have increased once again. A check by Diamond TV has established that most suppliers are selling the commodity as high as 145 kwacha per 25 kg bag. Read more: Zambian Observer
International Business and Finance
The World Trade Organization has slashed its forecast for trade growth this year by more than half, warning the slowdown could hit living standards and jobs. The WTO said it expected trade volumes to grow by just 1.2% in 2019, down from the 2.6% it predicted in April. It also cut its global economic growth forecast from 2.6% to 2.3%. Read more: BBC News
Visa, Mastercard Inc and other key financial partners may reconsider their involvement in Facebook Inc’s cryptocurrency, Libra, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Read more: Reuters
Prime Minister Boris Johnson will on Wednesday unveil his final Brexit offer to the European Union and make clear that if Brussels does not engage with the proposal, Britain will not negotiate further and will leave on Oct. 31. Read more: CNBC
Manufacturing activity is sputtering in the U.S., which matters more to the broader economy than many assume. Read more: Wall Street Journal
There’s still a month to go until Moody’s Investors Service reviews South Africa’s sovereign rating, but foreign investors aren’t taking chances. Overseas ownership of South African government debt fell to 37% of the total at the end of August, from as high as 43% in March 2018, according to National Treasury data. Read more: Bloomberg
Capital Markets Report
In 29 trades recorded yesterday, 235,561 shares were transacted, yielding a market turnover of K181,432. Trading activity was recorded in Copperbelt Energy Corporation, Lafarge, Madison Financial Services, Standard Chartered Bank Limited, Zanaco and CEC Africa on quoted tier. The LuSE All Share Index (LASI) closed at 4,393.70 points down by 0.04% from its previous close of 4,395.34 points. The market remained on a capitalization of K57,092,923,688 including Shoprite Holdings and K22,853,717,708 excluding Shoprite Holdings.
Chart of the Day: