BOZ POSTS GAINS FROM TREASURY BILL AUCTION

By BUUMBA CHIMBULU THE Bank of Zambia (BoZ) was able to absorb the K1.40 billion it sought to raise at the Thursday October 7 Treasury bill auction. This is after having received K3.10 million in total bids at face value (K2.77 billion at cost). Access Bank Zambia in its daily market report indicated that across all tenors, the money market papers rallied further at an average 200 basis points. It also stated that foreign exchange faced with much intervention from the Central Bank during the Thursday trading session, the Kwacha still posted a marginal loss by end of trading.  “The Kwacha was trading at 17.115/17.165 at end of the session having started out at 17.104/17.154 against the United States Dollar. Should the central bank continue with sells of United States Dollar in the Friday session, the Kwacha may post gains during the session,” the bank stated. Access bank also stated that Trafigura had provided Konkola Copper Mines a US$100 million loan at libor plus seven percent. It indicated that the mine was under a provisional liquidation, and the facility will be repaid with copper deliveries. Meanwhile, the bank stated that copper prices rose on Thursday, helped by a rebound on global equities markets, falling exchange inventories and the threat of supply disruption at a mine in Peru. Benchmark copper on the London Metal Exchange (LME) was up 2.5 percent at US$9,268 a tonne. Prices have, however, fallen from a record high of US$10,747.50 in May as global economic growth faltered.