Business

Export, mining, local securities to boost Kwacha

COPPER cathodes.

CYNTHIA MWALE, Lusaka
ZAMBIA’S export earner sectors, mining activity, coupled with local securities from offshore interest, are expected to bolster the Kwacha in the short to medium term, financial market players anticipate.
The local unit is expected to range to between K7.34 and K7.39.
According to First National Bank (FNB) daily newsletter, the Kwacha will remain upbeat against United States (US) dollar on account of month-end tax obligations.
“In the short to medium term, we could see an increase in activity from the mines. Offshore interest in the local securities is also likely to give the Kwacha further support,” the bank states.
On Thursday, after a fairly good run, the Kwacha lost some ground on what seemed to be some dollar demand on the local market.
However, boosted by increased dollar liquidity on the market, and provisional taxes due at the end of the month, the weakness did not last long, and the unit eventually closed at K7.37.
Zanaco bank also predicts that the Kwacha will remain steady in this week supported by demand to meet month-end obligations to trade in the range of K7.30 and K7.40.
In its daily treasury on Friday, the bank says the local unit lost grip to marginally depreciate by one ngwee, closing at K7.355 and K7.375.
“The Kwacha lost ground on Thursday, undermined by month-end dollar demand and bargain buying by corporates after the closing at its highest level in more than week on Wednesday.
“The local unit opened at K7.320/K7.340, lower than the previous days close, after which dollar demand swung the Kwacha to a low of 7.380/7.400,” the banks notes.
On the commodity trend, Copper prices steadied on Thursday as strong US data bolstered the prospects for economic growth, but gains were modest as investors worried about an impending slowdown in summer demand and lack of a Greek debt deal.


Facebook Feed

Ad1