FRANK MUKUPA writes
THE kwacha traded strong against the dollar on Tuesday due to hard currency in-flows notably from the mining sector and other corporates converting dollars for their local currency tax obligations due this week, Absa Bank Zambia has said.
According to Absa daily report the kwacha gained gradually in both the morning and afternoon trading sessions to close 10 ngwee higher at K14.600/14.650 per dollar compared to Monday’s close of K14.700/14.750.
“Near term, the local currency is anticipated to trade steady as importers stay on the fence in the hopes of further kwacha gains,” the report says.
It says there was a slight increase in the liquidity levels in the market yesterday moving from K1,099.58 million to K1,136.77 million with the volumes of funds traded on the interbank little changed from K242.00 million to K241.70 million.
“The overnight interbank rate was little unchanged at 12.51 percent. The local markets remained subdued in yesterday trading session with all yields remaining unchanged. We anticipate to see some activity as players prepare for the T-bill auction tomorrow,” the report says.
And the report says copper prices were steady on Tuesday as uncertainty over the impact of the coronavirus outbreak in China capped gains even though hopes rose that the worst might have passed. The report says three-month copper on the London Metal Exchange was almost unchanged at US$5,743 a tonne and the mosttraded copper contract on the Shanghai Futures Exchange (ShFE) SCFcv1 was nearly flat at 45,620 yuan ($6,547.07) a tonne.
Oil prices, the report says climbed on Wednesday as China reported its lowest daily number of new coronavirus cases since late January, stoking investor hopes that fuel demand in the world’s second-largest oil consumer may begin to recover from the epidemic.
“Brent crude was up 98 cents, or 1.8 percent, at US$54.99 per barrel. U.S. West Texas Intermediate (WTI) CLc1 rose 81 cents, or 1.4 percent , to $50.65 a barrel,” the report says.
The report says Gold was little changed on Wednesday, as equities rose after the number of new coronavirus cases fell, while uncertainty over the economic impact of the outbreak underpinned bullion.
“Spot gold was flat at $1,567.82 per ounce. U.S. gold futures GCcv1 edged 0.1 percent higher to $1,571.20,” the report says.
FRANK MUKUPA writes