DESPITE most emerging market currencies continuing being under pressure against a strong United States (US) dollar, the Kwacha is expected to hold in the range of K9.60 and K9.70, financial market players have noted.
Cavmont Bank says Wednesday’s trading session witnessed the local unit rally come to a halt as it failed to break below the K9.50 level.

“The local unit has continued to out-perform other emerging market currencies which have recently come under pressure against the greenback following indications from the US Federal Reserve that it may hike interest rates soon,” the bank says in its market report.

On Wednesday, the Kwacha opened trading at K9.50 and K9.55 and was largely unmoved against the dollar, with minimal activity being seen from most corporates.

Similarly, First National Bank (FNB) Zambia, in its daily newsletter, says the Kwacha is expected to continue being firm against the dollar.

FNB says it seems the steam experienced in dollar/Kwacha pair over the last few days has died down.

“We are of the view that the current levels will hold although the tide seems to now have shifted to the upside. We see support at K9.60 and resistance at K9.70 yesterday,” the newsletter reads.

Meanwhile, Zanaco in its daily newsletter says the Kwacha is anticipated to trade in the range of K9.70 and K9.90 in the short-term with a bias towards a weaker local unit.

The bank attributes the depreciation to corporate demand for foreign currency as it begins to pick up, though the downside could be limited by support from inflows from offshore investors after a central bank auction for Treasury bills.

On the regional front, the South African rand traded close to the previous day’s seven-week low against the dollar yesterday, hurt by investor concerns over the future of Finance Minister Pravin Gordhan.

The Rand touched an early session low of 14,7385, but clawed back to 14.6850 by 07: 04 GMT, up slightly from Wednesday’s close at 14.720 while the Kenyan shilling was also stable due to subsiding dollar demand from the manufacturing sector and inflows from charities offering support to trade at 101.25/35 compared with 101.30/40 at Wednesday’s close.

Meanwhile, the Botswana pula and Nigerian naira remained unchanged at 10.7941 and 304.5 respectively yesterday from Wednesday.

Source: Daily Mail

THE price of copper on the London Metal Exchange (LME) yesterday marginally appreciated from two-month lows after China’s manufacturing activities increased.

The commodity, which is Zambia’s major foreign exchanger earner, traded at US$4,632 per tonne yesterday from US$4,625.50 on Wednesday.

Reuters reports that activity in China’s manufacturing sector picked up last month, although gains were modest, an official survey showed yesterday.

“London copper shifted away from two-month lows and zinc neared 15-month highs on Thursday after China’s manufacturing activity unexpectedly expanded in August, typically a quiet month for metals demand,” Reuters says.
Three-month copper on the LME had edged up 0.4 percentage point to US$4,632 a tonne by 01:30 GMT, after ending little changed in the previous session.

On Tuesday, the copper price fell to its weakest since June 24, at US$4,600 a tonne amid mounting supply. LME exchange stocks have jumped by 40 percent in the past fortnight.

On oil, the price rose in Asian trade on Thursday as the United States (US) dollar weakened, rebounding from a more than three percent drop in the previous session following surprisingly large builds in US crude and distillate stockpiles last week.

Brent crude climbed 18 cents to US$47.07 a barrel, while US crude oil rose 24 cents to US$44.94 a barrel, after falling US$1.65 in the previous session.

Source: Daily Mail

IN AN effort to boost the real estate sector, Zambia is this month expected to host the ZamReal Property Forum which will focus on issues of development and investment in the local industry.

The forum is scheduled to take place on September 28, 2016 with a focus on the Zambian real estate market.

According to a statement availed to the Daily Mail yesterday, the forum will also focus on local representation to assist international investors in finding local partners.

“ZamReal is a one-day forum in which delegates will discuss key topics concerning property development and investment. ZamReal will attract a variation of delegates including developers, investors, financiers as well as all property stakeholders looking to expand their Zambian real estate business,” the statement reads.

This year’s forum will be held under the theme “Development, private equity and legal construction economics investment finance”.

Some of the speakers expected at the forum are JLL director and head of capital markets Anthony Lewis, First National Bank South Africa commercial property finance specialist Mpangwe Mutwale and Pam Golding Properties Zambia managing director Inutu Zaloumis.

Others are Heriot Properties managing director Steven Herring , Knight Frank Zambia Limited managing director Tim Ware, Afritec Asset Management director Shaun Davy and Thebe Investment Management co-head of real estate Mumamba Mwansa, among others.

Source Daily Mail

OF THE total K98.6 million turnover recorded in 11companies on the Lusaka Stock Exchange last week, Metal Fabricators of Zambia (ZAMEFA) contributed a huge chunk of over K98.4 million.

Last week, the local bourse recorded a total of 20,493,324 shares transacted in eight trades, resulting in a market turnover of K98, 602,194.

This is in comparison with a total of 222,530 shares which were transacted in 38 trades, resulting in a market turnover of K274, 453 the previous week, according to the LuSE weekly news update availed to the Daily Mail on Monday.

“Of the total K98, 602,194 turnover last week, ZAMEFA accounted for K98, 439, 858. During the week under review, LuSE recorded trade in 11 firms compared to nine the previous week,” the report reads.

Other firms that recorded activity apart from ZAMEFA, are Zambia Sugar accounted for K40, 349 followed by African Explosives Limited Zambia (AELZ), which stood at K37, 895 and Zambian Breweries at K24, 800.

Among other firms which recorded trading were Airtel, Lafarge, Madison Finance Services and Zambeef Products.
On price share changes, AELZ and British American Tobacco Zambia recorded losses of K1.71 and K1.40 respectively and Standard Chartered Zambia registered a drop of K0.03, while both Copper belt Energy Corporation and Puma share prices dropped by K0.02.

Meanwhile, the LuSE all share-index closed at 4,401.43 points, a decline of 2.30 percent from the previous close of 4,504.83 points.

During the week under review, bonds valued at K783, 000 changed hands in four transactions, yielding market value sales of K687, 000 compared to bonds valued at K1, 531,000 changed hands in a two transactions, yielding market value sales of K1, 032,000 the previous week.

On market capitalisation, the market closed K58.8 billion translating to a marginal reduction from K59.5 billion the previous week.

Source: Daily Mail

ZAMBIA’S copper production is expected to increase to over 740,000 tonnes, representing a five percent growth this year, due to enhanced production by new mines such as Kalumbila Mines.

Other contributing projects are plans by Glencore to invest over US$1.1 billion over the next three years to expand operations at its Mopani in the mining sector.

A latest report by the Institute of International Finance (IIF), which is a global association of the financial industry titled ‘Zambia buffeted from all sides’, predicts that copper output will rise from 710,560 tonnes to 746,000 tonnes.

“The official target for copper production is about 1.5 metric tonnes per annum by 2017. However, this is deemed overambitious by the IIF given electricity constraints, sluggish global demand and low prices. Despite these constraints, the IIF expects copper production in Zambia to rise steadily over the next few years.

“The current account deficit is forecasted to narrow this year and next year as copper production rises, and especially if prices edge higher,” the report indicates.

Currently, copper price on the global market is below US$4,700 a tonne.

The report also covers topics such as copper mining, including copper prices and production, mining taxation and its effect on the Zambian investment climate, power generation and its impact on companies and the economy.

Other topics include the performance of the Kwacha against other currencies depreciation rates and outlook monetary and fiscal policy of Zambia, particularly, the stance of the budget deficit, risks and opportunities in Zambia, including the sectors with the highest potential in the country.

Over the longer term, the Zambian economy has significant potential due to its rich natural resource base and track record of pro-market policies and democratic stability.

Source: Daily Mail