The Editorial Team |

Zimbabwean Stocks Hit Record High as Inflation Soars Near 100%

HARARE (Capital Markets in Africa) – Zimbabwe’s stock market has hit a record high, for all the wrong reasons. The southern African nation’s Industrial Index rose 5.6% on Monday to extend its gain this quarter to 80%, the most among any of the primary equity gauges tracked by Bloomberg globally. Stocks are rising because local investors are desperate to hedge against inflation, which accelerated to 98% in May, the statistics agency said on Monday. Prices are rocketing amid a scarcity of…

South Africa Finds a Credit Rating, Once Lost, Is Hard to Regain

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JOHANNESBURG (Capital Markets in Africa) – Lesetja Kganyago, then the top official at South Africa’s Treasury, was taking a break at Sugarloaf Mountain in Rio de Janeiro between two G-20 meetings in November 2008 when he got the bad news. Barely three years after his country had managed to get its highest-ever investment-grade ratings from two of the three main credit-rating companies, the global financial crisis was threatening to reverse that progress. South Africa was…

Alexander Forbes to Soon Announce Sale of Its Insurance Unit

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JOHANNESBURG (Capital Markets in Africa) – Alexander Forbes Group Holdings Ltd. plans to announce the buyer and price of its short-term insurance business by the end of July as the South African retirement-services provider streamlines operations in a new strategic push. “There was massive interest,” Chief Executive Officer Dawie de Villierssaid by phone Tuesday, declining to identify bidders. “We’re in the final stretch with the shortlisted candidates and are negotiating with them.” The company is also exiting…

Barrick Gold Gets Three More Weeks to Make Formal Acacia Offer

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JOHANNESBURG (Capital Markets in Africa) – Barrick Gold Corp. has bought itself three more weeks to consider making a formal offer to buy out the minority shareholders of its African unit Acacia Mining Plc. The Toronto-based miner received an extension until July 9 from the UK takeover panel, Acacia said in a statement. The previous deadline was set to expire Tuesday. Acacia also said it’s open to an offer, “subject to the price offered being fair and commanding…

South African Rand Is Prime Beneficiary of Draghi Stimulus Talk

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JOHANNESBURG (Capital Markets in Africa) – South African rand posted its best advance in more than two months Tuesday after a trifecta of good news: dovish statements from the European Central Bank, a positive turn in the trade saga, and a pledge further government support for the beleaguered power utility Eskom Holdings SOC Ltd. The rand strengthened as much as 1.9%, leading emerging-market currency gains against the dollar. It’s the biggest one-day move since April 1, and has…

Don’t Be in a Rush to Do Business in World’s Top Cobalt Producer

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KINSHASA (Capital Markets in Africa) – When a foreign investor with multimillion-dollar projects across Africa was told the president of the Democratic Republic of Congo wanted to see him, he booked a suite at one of the country’s top hotels. After six days of waiting, he left. Since Felix Tshisekedi took the helm of the world’s biggest cobalt producer almost five months ago, private planes jam the main airport in Kinshasa, the capital, and hotel lobbies teem…

Fed More Important for EM Assets Than Trump and Trade

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LAGOS (Capital Markets in Africa) – That’s the message EM investors can take on board as they weigh up U.S. rate reductions and next week’s G-20 meeting — and a dovish Fed should overcome trade fears. There are opposing forces at play. Donald Trump’s desire for lower interest rates — markets say there’s an 84% chance the Fed cuts by the end of July — is making EM traders giddy about a weaker dollar. But his penchant for trade…

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