Copper prices nose dive

THE price of copper has continued on its descent plane and yesterday posted a drop of US$19.50 to push its selling price to$4,579.50 a tonne, according to Cavmont Bank Zambia daily market report.

In other reports, it has been generally noted that Copper prices will continue to decline due to China’s reduced appetite for the base metal which has put a major drag on global demand.

The bank has further reported that the price of Brent crude oil has kept falling and on Wednesday it fell by $0.90 and the commodity was currently trading at $37.60 a barrel.

The price of gold however posted as margin rise of US$0.76 and the precious metal was now selling at $1,065.41 an ounce. The Lusaka Stock Exchange (LuSE) All Share Index shot up by 0.01percent to register 5,753.07 points.

On the local scene the bank reported that Wednesday’s trading session saw the Kwacha remain largely unchanged against the US dollar as it opened at K10.950 / K10.970 on interbank.

Despite, the continued fall in Copper prices below the $5,000 per metric tonne level, the local unit has remained resilient owing to tight liquidity in the money markets. The Kwacha closed K10.950 / 10.970, unchanged from its opening levels.

On local money markets, Cavmont reported that commercial banks’ aggregate current account balance increased further by K199.64 million to K702.95 million while the overnight borrowing and lending rate decreased by 0.19percent to 25.60percent.

Total funds traded on Interbank were K284.00 million.