SUN BUSINESS REPORTER writes
@SunZambian
THE three-month copper price on the London Metal Exchange (LME) rose in early Asian trading but later retreated to be almost flat at $5,962 a tonne, according to Access Bank Zambia treasury market update.
The bank reported that most price of industrial metals on the LME advanced on Monday ahead of planned U.S.- China trade talks, but gains were capped due to a cautious view on the outcome of the discussion.
On oil prices, the bank reported that these fell on Monday as investors fretted over the outlook for global economic growth, while weekend talks between Iran and major powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.
Brent Crude futures were down by 23 cents at $63.23 a barrel. U.S. West Taxes Intermediate crude was down by 9 cents at $56.11 a barrel.
On the local money markets, Access reported that the Kwacha closed where it opened in Friday’s trading session at 12.875/12.925, with an intra-day high of 12.860/12.910,
The local currency traded flat, with most interbank deals and is this week expected to trade within the narrow range of 12.650-13.050
On money market the bank reported that theaggregate commercial banks current account balance decreased to ZMW K529.91million from K 550.77 million.
Overnight interbank rates averaged at 10.47percent, 0.02 points lower than the previous day’s average.
A total of K 180million was traded in the overnight market. The Bank of Zambia) BoZ) injected K580 million of liquidity through the overnight OMO window.
On inflation, Access reported that Zambia’s inflation accelerates from 8.6percent in June to 8.8percent in July 2019, the highest inflation rate since November 2016.
Prices rose 0.5percebnt in the month as Zambia’s trade balance swung to K516.8million deficit in June from the K501.1million surplus recorded in May.
June imports stood at K8.51billion against a total export value of K7.99billion.
And in neighbouring South Africa, the rand tumbled to its weakest level in three weeks on Friday, while the yields on debt issued by the government and the power utility Eskom shot up as the risk grew of a credit downgrade to Junk status by year-end.
The rand was 1.24 percent weaker at 14.2650 per dollar.
Moody’s delivered a warning about the government’s $4 billion bailout for Eskom.
Fitch on the other hand added to the negative news, trimming its outlook to negative from stable while maintaining BB+ rating.
The rand ended the week as the worst performing currency.
