Absa Bank Zambia says Copper prices hovered around a near seven-year peak on Wednesday, as sentiment was lifted by prospects of U.S. political stability, development of coronavirus vaccines and demand from China.
According to the Bank’s Daily Market update report, three-month copper on the London Metal Exchange rose as much as 0.9% to $7,360 a tonne, a level unseen since January 2014.
The Bank also said Oil rose for a fourth straight day on Wednesday, shrugging off an industry report showing a higher-than-unexpected rise in U.S. crude stockpiles and extending a rally driven by hopes that a COVID-19 vaccine will boost fuel demand.
“Brent crude was up 54 cents, representing 1.1%, at $48.40 a barrel by 02:47 GMT, having risen almost 4% in the previous session,” the Bank stated.
Meanwhile, the Bank disclosed that the Kwacha posted further losses in yesterday’s trading session as the supply and demand imbalance continue to hold.
It said the local unit traded between Twenty Kwacha Ninety Three Ngwee and Twenty Kwacha Ninety Eight Ngwee and closed 1 ngwee weaker at Twenty Kwacha Ninety Four Ngwee and Twenty Kwacha Ninety Nine Ngwee respectively.
“The liquidity levels in the market increased moving from K2, 866.08 Million to K3, 491.02 Million seen on Monday. The volumes of funds traded on the interbank reduced further to K699.00 Million from K706.00 Million. The weighted overnight interbank rate was down 2bps at 8.06%.”

“The market was flat post primary T-bill auction with yields remaining unchanged,” it added.