Good afternoon. Here’s what you need to know
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LuSE records K118.5 billion total savings in Q2
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World Bank approves $1.5 billion for Ethiopia
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Boeing names new CEO after losses more than triple
In Local Business and Finance News
Total savings for Zambia’s capital markets for the second quarter of this year increased by 13.35 percent, closing at K118.5 billion as of June 30, 2024. The increase came at the back of the weakening currency, coupled with inflationary pressures during the first half of 2024. Securities and Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu, said the Zambian economy faced inflationary pressures in the second quarter of 2024, affecting capital market performance. He, however, mentioned that the market showed resilience with gains in several counters such as an increase in total savings despite challenges like rising fuel costs and El Niño drought impacts. Chitalu said this on Tuesday at a press briefing when giving an update on the performance of the capital markets for the second quarter of 2024. “The equity market saw mixed performance in the second quarter of 2024, with notable price changes in companies like Shoprite and ZCCM-IH, and a significant increase in total savings and market capitalisation. Read more: Zambia Monitor
President Mnangagwa has assured Zambia of Zimbabwe’s support in its bid for the African Development Bank (AfDB) presidency. Zambia’s candidate Dr Samuel Munzele Maimbo is contesting for the AfDB top post in next year’s election. More than five candidates from African countries are eyeing the same post. Yesterday, Zambian President Hakainde Hichilema sent his emissary, former Zambian Vice President Enock Kavindele, to meet President Mnangagwa seeking Zimbabwe’s backing for its candidate. Soon after meeting President Mnangagwa at State House yesterday, the former Zambian Vice President said his country was seeking Zimbabwe’s support in its bid for the AfDB top post. Read more: The Herald
Vedanta Resources Holdings Limited has announced the reinstatement of the Konkola Copper Mines (KCM) Board of Directors. The board comprises nine members, who include Vedanta Base Metals CEO Chris Griffith, KCM Chief Operations Officer and country head Malcolm Mewett, economist Dr Moses Banda, among others. In a statement, Tuesday, Vedanta Corporate Communications Director Masuzyo Ndhlovu said the reinstatement of the board marked the return of full management control to Vedanta. “Vedanta Resources Holdings Limited, the diversified global mining, metals, natural resources, energy, and technology conglomerate today announced the reinstatement of the Board of Directors of the Konkola Copper Mines (KCM). This marks the return of full management control to Vedanta. Read more: News Diggers
ZESCO Limited has announced the launch of its Net Metering programme, set to begin on August 1, 2024. In a statement, Zesco Spokesperson Matongo Maumbi said the programme was designed to promote the adoption of renewable energy sources by allowing customers to generate their own electricity and feed excess power back into the grid. “Zesco Limited announces the launch of the Net Metering Programme, set to begin on 1st August 2024. This is in line with The Electricity (Net Metering) Regulations, 2024, and is designed to promote the adoption of renewable energy sources among our customers, allowing them to generate their own electricity and feed any excess power back into the grid. Read more: News Diggers
In International News
The World Bank’s board has granted approval for $1.5 billion in financing for Ethiopia’s budget support, marking the first time the lender has offered this type of lending to the country. This decision comes as Ethiopia strives to advance its long-standing debt restructuring. The second most populous country in Africa received a $3.4 billion program from the International Monetary Fund on Monday, following the decision to float its birr currency by the central bank, allowing for progress in its debt restructuring. Ethiopia will receive a $1 billion grant and a $500 million low interest credit line from the World Bank, in what is the first direct budgetary support facility provided to the country by the global lender. Financial support was contingent on the government implementing important economic reforms, which included liberalizing the foreign currency market. Read more: Africa News
Japan’s central bank has raised the cost of borrowing for only the second time in 17 years as it tries to normalise monetary policy in the world’s fourth largest economy. The Bank of Japan (BoJ) increased its key interest rate to “around 0.25%” from the previous range of 0% to 0.1%. It also outlined a plan to unwind its massive bond buying programme as it eases back from a decade of stimulus measures. The move comes hours before the US Federal Reserve is set to announce its latest interest rate decision, while an announcement is also expected from the Bank of England on Thursday. Read more: BBC News
The UK chancellor has said the government will have to raise some taxes in October’s Budget after months of speculation about Labour’s stance on tax. “I think we will have to increase taxes in the Budget,” Rachel Reeves told the News Agents podcast. She was responding to a question about raising money following her claim on Monday that the previous government left a £22bn “hole” in the public finances. Labour said repeatedly during the election campaign there would be no tax rises on “working people”, but the Conservatives have insisted Labour will increase them. Read more: BBC News
Boeing named a new CEO after it reported a core operating loss of $1.4 billion in the second quarter – more than triple the loss from a year ago – as increased scrutiny of the safety and quality of its planes kept the troubled company from making enough aircraft to return to profitability. Boeing announced Robert “Kelly” Ortberg, the former CEO of supplier Rockwell Collins, will be its new CEO, effective August 8, replacing retiring Boeing CEO Dave Calhoun, who has been under fire for the company’s problems. Ortberg has a background as an engineer, not in finance, having earned his college degree in mechanical engineering. Ortberg, who noted “there is much work to be done” at Boeing, has a background that could be encouraging to some staff who have criticized Boeing’s management for having too much of a emphasis on finance rather than the engineering quality. Read more: CNN
Finally, Capital Markets News
In 38 trades recorded yesterday, 20,013 shares were transacted resulting in a turnover of K123,870.33. No price change was recorded yesterday. Trading activity was recorded in Airtel, CEC Zambia, Chilanga Cement, FARM, Real Estate Investments Zambia, Standard Chartered Bank Limited, Zambia Breweries, ZANACO, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its previous day close at 14,462.17 points. The market closed on a capitalization of K118,483,803,810.24 including Shoprite Holdings and K75,005,447,010.24 excluding Shoprite Holdings.
A total of 7 Govt Bond trades with quantity K16,839,000 and turnover K14,588,060 were processed yesterday.
