Story of the Day
In the end of August and beginning of September 2022 bond trading, there was a full week of trades, of which Friday’s bond trading was the best performing day of the week. Bonds of total face value of K795,286,000 were transacted in 100 trades, resulting in a market value sales of K512,083,740 Bonds are a low risk investment issued when the government borrows money from its people. You can purchase bonds using the Lusaka Securities Exchange Application online. Read more
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The Zambian government said Tuesday it was working on raising the level of financial inclusion to enable people in rural areas to benefit from the growing financial sector. Trevor Kaunda, the Permanent Secretary in the Ministry of Finance and National Planning in Charge of Monitoring and Evaluation, said the plan was to increase financial inclusion in rural areas from the current 50 percent to 75 percent. In remarks delivered during a meeting to scrutinize the use of general points for the provision of financial services organized by the Bank of Zambia (BoZ), the country’s central bank, the official said the initiative was aimed at fostering financial inclusion by making available government facilities in rural areas which financial service providers could leverage on in providing financial services. Read more: Xinhua
Reuters reports that Investor losses after the restructuring of Zambia’s three defaulted Eurobonds are likely to be greater than expected, Morgan Stanley said on Tuesday, adding that a new combined ‘super bond’ maturing in 2029 was a possibility. A “realistic scenario” would be for the $3 billion of bonds to undergo a 35% principal haircut, a 30% cut to interest payments and 50% of accrued payments being written off. That would mean a recovery value of $56.50, an exit yield of 12% and a cut in the debt’s net present value – the value of future payments – of 51%, bank analysts said in a note. Read more: Lusaka Times
Fifty Small and Medium Enterprises – SMEs are expected to participate at this year’s Trade Exhibition in the Democratic Republic of Congo -DRC. The 50 who will camp in Lubumbashi for three days are being sponsored by the Finnish Government and ABSA bank Zambia to a tune of about one million Kwacha. Read more: ZNBC
OIL Marketing Companies Association of Zambia (OMCAZ) president Dr Kafula Mubanga says citizens should expect a slight increase in fuel pump prices once tax waivers on the commodity are removed. The Ministry of Energy recently announced that it would not extend any waivers on fuel beyond September 30, 2022. In a letter addressed to all managing directors of oil marketing companies, Ministry of Energy Permanent Secretary Francesca Zyambo informed the OMCs that any oil deliveries made beyond September 30 would be subjected to all applicable taxes. Read more: News Diggers
International Business and Finance
The Alliance for a Green Revolution in Africa (AGRA) has recently committed to the fight against food insecurity and climate change, pledging a $550 million fund for the next five years. This fund would be used to improve seed systems, government engagement, agricultural supply chains, and combat climate change. The overall goal of procuring this huge fund is to reduce dependency on imported food, and of course, reduce the inflation of food prices in Africa. The $550 million fund set out by AGRA is intended to help local and small-scale farmers across the continent, mitigate agricultural challenges. These farmers have neither the means nor the resources to combat some of the more complex issues that well-funded farmers can. They are in a vulnerable position where even the slightest nudge could affect their output. Read more: Business insider
The cost-of-living crisis had rocked Africa’s prosperous countries before Russia invaded Ukraine. Now, many businesses and households are being squeezed even harder to make ends meet. With the region’s currencies weakening against the dollar and central banks pushing rates up, the people of Africa face a cost of living crisis. Here is a look at the recent developments in key markets across the continent. Read more: Business Insider
The UK inflation rate has eased slightly although prices are still continuing to rise at nearly their fastest rate in 40 years. Inflation – a measure of price rises – dipped to 9.9% in the 12 months to August, from 10.1% in July, the Office for National Statistics (ONS) said. Soaring living costs are eating into household budgets, with prices rising faster than wages. The Bank of England has said inflation could peak at more than 13% this year. Read more: BBC News
Foxconn and Vedanta have announced $19.5bn (£16.9) to build one of the first chipmaking factories in India. The Taiwanese firm and the Indian mining giant are tying up as the government pushes to boost chip manufacturing in the country. Prime Minister Narendra Modi’s government announced a $10bn package last year to attract investors. The facility, which will be built in Mr Modi’s home state of Gujarat, has been promised incentives. Vedanta’s chairman Anil Agarwal said they were still on the lookout for a site – about 400 acres of land – close to Gujarat’s capital, Ahmedabad. Read more: BBC News
US inflation ticked back up in August, despite plunging gas prices, according to data from the Bureau of Labor Statistics released Tuesday. On a monthly basis, consumer prices rose 0.1% from July, according to the Consumer Price Index, which measures a basket of consumer goods and services. Economists had projected that inflation would fall from July to August by 0.1%, after holding steady at 0% growth from June to July. Annual inflation eased for the second-straight month but also remained stubbornly high, with prices up 8.3% year on year, a slowdown from the 8.5% gain in July and the 40-year high of 9.1% in June. The last time the headline CPI rate declined in consecutive months was the first part of 2020. Core CPI, which strips out the more volatile categories like food and gasoline, measured 6.3% in August, up from 6.2% in July. The month-on-month gain of 0.6% was double what economists had expected. Read more: CNN
Elon Musk may be fighting tooth-and-nail to get out of his deal to buy Twitter, but the social media company’s shareholders plan to hold him to it. The vast majority of Twitter shareholders on Tuesday voted in favor of Musk’s $44 billion takeover deal, a value of $54.20 per share. The company’s stock opened Tuesday at just under $41 per share, nearly 25% below the deal price. A preliminary count indicated that 98.6% of the votes cast on Tuesday were in favor of the deal, Twitter said in a statement. Read more: CNN
Capital Markets Report
In 86 trades recorded yesterday, 182,946 shares were transacted resulting in a turnover of K553,053. A share price gain was recorded in Zambeef of K0.03. A share price loss of K0.01 was recorded in Standard Chartered Zambia. Trading activity was also recorded in SHOP, Zambia Breweries, ZCCM, Zanaco, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 7,057.08 points, 0.02% down from its previous close of 7,058.84 points. The market closed on a capitalization of K71,649,905,633 including Shoprite Holdings and K36,867,220,193 excluding Shoprite Holdings.