Story of the Day:
The Kwacha appreciation has sent scores of economic commentators into a frenzy of excitement, speculating about the potential causes of the appreciation amid the third wave of the Covid-19 pandemic and two weeks before the presidential elections. Fortunately, both the Ministry of Finance (MoF) and the Bank of Zambia (BoZ) have provided some measure of guidance in terms of explanatory factors associated with the Kwacha appreciation. Read more
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Zambia and Japan have signed an agreement concerning debt relief measures for Zambia under the G20 Debt Service Suspension Initiative amounting to approximately 822,000 US Dollars. Japanese Ambassador to Zambia Mizuuchi Ryuta and Secretary to the Treasury Fredson Yamba signed on behalf of the two countries. Read more: ZNBC
First National Bank (FNB) Zambia has provided US$25 million to the growth of the agriculture sector in the 2020/2021 farming season. The bank financed 1,500 hectares of maize, 3,000 hectares of soyabeans, 600 hectares of sugarcane and 4,000 hectares of wheat outside traditional crops and 300 hectares of potatoes. Read more: Zambia Daily Mail
In the first quarter of this year, Lusaka South Multi Facility Economic Zone (LSMFEZ) attracted nine investors with a pledged investment of US$235 million. LSMFEZ received 31 expressions of interest and offered land to nine investors to establish businesses in various sectors. Read more: Zambian Business Times
According to the UN’s COMTRADE data, Zambia exports to Angola in 2020 were a paltry US$1.7m and Angola’s exports to Zambia were only US$220k, for neighboring countries that could do millions if not billions of trade considering that Angola had Oil and Zambia has a diversified Agro produce. Read more: Zambian Business Times
International Business and Finance
Sony on Wednesday reported a 26.3% rise in first-quarter operating profit, benefiting from lingering pandemic-led demand for its PlayStation 5 games console. Operating profit for the quarter ended June 30 rose to 280.1 billion yen ($2.57 billion) from 221.7 billion yen a year earlier. Read more: CNBC
U.S. stock futures fell slightly on Tuesday night after the S&P 500 rose to another fresh record during the regular session. Dow Jones Industrial Average futures fell 33 points, or 0.09%. S&P 500 and Nasdaq 100 futures dipped 0.09% and 0.03%, respectively. Read more: CNBC
Toyota Motor Corp posted a record quarterly operating profit on Wednesday as pandemic-hit sales rebounded, but refrained from raising its full-year estimate, citing rising COVID-19 cases and a global chip shortage. The world’s biggest automaker by vehicle sales stuck by its forecast made in May for an operating profit of 2.5 trillion yen ($22.93 billion) for the current fiscal year. Read more: Reuters
DHL Express has ordered 12 electric cargo aircraft from start-up Eviation for delivery in 2024 and plans to build the world’s first electric air cargo network. DHL Express said in a statement that it was the first company in the world to order “Alice” aircraft from Eviation, adding it planned to establish the first electric air freight network in a step towards sustainable aviation. Read more: Reuters
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In 15 trades recorded yesterday, 36,962 shares were transacted resulting in a turnover of K125,106. Trading activity was recorded in British American Tobacco Zambia, Copperbelt Energy Corporation, First Quantum Minerals Zambia, Lafarge, Pamodzi, PUMA, Standard Chartered Zambia and Zanaco. The LuSE All Share Index (LASI) maintained its close at 4,682.42 points, as there were no share price movements. 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: