Copper in longest losing streak


COPPER price which has continued to crash on Monday fell by $139.50 to trade at$4,498.00 a tonne, according to Cavmont Bank Zambia daily market report.

And Bloomberg reports that the on-going collapse appears to have finally impacted Chinese equities which have given up their gains and are drifting rapidly lower.

It reports that this is the longest losing streak on record and is the worst 14-day loss (down 13.8percent) since October 2011.

For other metals Cavmont reported that the price of gold also collapsed by US$10.78 and that the precious met was currently selling at $1,072.35 an ounce.

The price of Brent crude oil however marginally rose by $0.63 to trade at $44.89 a barrel.

On the local market, the bank reported that on Monday, the Kwacha oscillated between gains and losses against the US Dollar owing to mismatch in demand and supply.  The currency pair opened at K11.790 / K11.810 and depreciated by 0.68percent to K11.870 / K11.890.

The local unit managed to reverse its earlier losses with following a slowdown in demand from importers to trade below the K11.800/$1 barrier.

The Kwacha closed at K11.720 / K11.740, 0.51percent stronger than Friday’s closing level.

The bank further reported that commercial banks’ aggregate current account balance increased further by K79.48 million to K375.66 million while the overnight borrowing and lending rate remained unchanged at 24.40percent.

Total funds traded on Interbank were K122.20 million.

Meanwhile, Friday’s Government Bond auction was under-subscribed by 92.65 percent .

Out of K1billion which was on offer, only K43.9 million was bid for.

The 5 year and 10 year yield rates both increased to 27.99percent from 25.00percent and 22.00percent respectively.

The 15 year yield rate reduced from 25.00percent to 22.50percent.