Tue, 27 Sep 2016 23:02:15 +0000
THE Kwacha regained some of its losses against the US dollar following increased dollar inflows on the inter-bank as well as from exporters.
According to Cavmont Bank Zambia daily market report, the currency pair opened at K10.025 / 10.075, but was later trading at K10.000 / K10.050 by afternoon.
Market activity was mostly subdued on the buy side which gave further support to the local unit.
Current trends seem to suggest that the local unit is likely to rebound further in the shorter term as exporters return to the market to settle month end obligations.
The Kwacha closed at K10.000 / K10.050, K0.025 stronger than the day’s opening levels.
On money markets, the bank reported that commercial banks’ aggregate current account balance decreased by K142.61 million to K754.33 million while the overnight borrowing and lending rate decreased by 0.21percent to 16.43percent.
Total funds traded on Interbank were K118 million.
The Central Bank was still conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K400 million.
Accepted rates were averaging 15.5percent and 16.75percent on 7days and 14days term deposits respectively.
Meanwhile Lusaka Stock Exchange (LuSE) reported that a total of 5,608 shares worth K35,752 were transacted in 4 trades.
According to LuSE daily commentary, a share price gain of K1.28 was recorded in AELZ.
Trading also occurred in CEC, REIZ and ZCCM.
The LuSE All Share Index (LASI) closed at 4,456.51 points, up by 0.14% from the previous close of 4,450.18 points.
The market closed on a capitalization of K58,719,334,983 including Shoprite Holdings and K 24,480,129,003 excluding Shoprite Holdings.
On the international scene the bank reported that the price of copper slight went up by US$7.50 to drive the selling price of the red metal to US$4,849.00 a tonneThe same was true of Brent crude oil whose price rose marginally rose by US$0.16 and the commodity was presently selling at US$47.81 a barrel.The price of gold similarly went up by US$1.75 to push the selling price of the precious metal toUS$1,339.41 an ounce.