TRYNESS TEMBO, Lusaka
ZAMBIA’S major foreign currency earner, copper, almost hit the US$6,000 mark a tonne on Friday supported by
a weaker United States (US) dollar and brighter growth in China.
Reuters reports that copper on the London Metal Exchange (LME) climbed 0.3 percentage point to US$5,958.50 a tonne, adding to a one percent gain from the previous session when prices touched their highest since March 30 at US$5,963.50.
“London copper was steady near the key level of US$6,000 a tonne on Friday and looked set to rack up a seven percent gain in the first half of the year, with prices supported by a weaker dollar and brighter factory growth in China,” Reuters reports.
LME copper was eyeing a fourth consecutive quarter of gains and was on track to advance seven percent for the first half.
Commenting on the development, Kingdom Future Limited says that in general there seems to be evidence of a switch, if cautious, in sentiment as buyers start coming back into the markets.
Kingdom Future Limited is a firm which provides Commodity Broking Services in all of the metals traded on LME.
On the local currency market, Zanaco says in the near term, the Kwacha is expected to hold steady against the dollar and trade in the range of K9.20 and K9.30.
In its daily treasury newsletter, the bank says the local unit recouped its losses of the week in Thursday’s trading session, as increased dollar supply relieved pressure on the local currency.
On Thursday, the Kwacha opened trading at K9.25 and K9.30 on the bid and offer respectively, with the local unit appreciating throughout the day as offshore and local market players sold off the greenback to participate in Friday’s bond auction.
Similarly, United Bank for Africa in its treasury newsletter says the local unit recouped losses posted earlier in the week ahead of the bond auction on Friday.