Kwacha still under pressure


The Kwacha on Friday came under further pressure against the US dollar, touching a low of K10.870 / K10.890 and was 2.03 percent weaker than Thursday’s closing level, according to Cavmont Bank Zambia daily market report.

The bank reports that despite demand from most corporate and SME buyers remaining weak, the currency pair recorded a depreciation of 2.64percent compared to the day’s opening rate of K10.590 / K10.610 following the continued strengthening of the greenback against most major currencies.

The Kwacha closed at K10.810 / K10.830, 2.03 percent weaker than Thursday’s closing level.

On local money markets, Cavmont reports that commercial banks’ aggregate current account balance increased further by K518.11million to K1,103.19 million while the overnight borrowing and lending rate decreased by 0.20% to 14.55percent.

Total funds traded on Interbank were K324.50 million.

On international markets, the bank reports that the price of copper shot up by $42.00 and the red metal was now selling at$5,066.00 a tonne.

Similarly the price of gold went up by $4.15 and the precious metal was currently trading at $1,142.26 an ounce.

The bank further reports that the price of Brent crude oil also  rose by $0.56 and the commodity was now selling at $48.29 a barrel.

Meanwhile the Lusaka stock Exchange (LuSE) reports that 260 shares were transacted in a single trade, yielding a market turnover of K502. Trading occurred in SCZ.

According to LuSE daily commentary, the All Share Index (LASI) maintained the previous close of 5,799.02 points as there were no price movements.

The market capitalization closed at K64, 546,000,000 including Shoprite Holdings and K30, 307,000,000.