Market Watch | - Part 11

South Africa rand hits near 19-mth high as Fed signals gradual tightening

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand hovered near a 19-month high against the dollar early on Thursday after the U.S. Federal Reserve raised interest rates on Wednesday, but signalled a gradual pace of rate hikes for the rest of the year. At 0646 GMT, the rand traded at 12.8125 per dollar, flat from its New York close on Thursday, after rallying to 12.77 late on Wednesday in the wake of the Fed’s…

Nigeria’s inflation slows after fifteen months in February

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Inflation in February accelerated at a slower pace to 17.87% YoY (January: 18.72% YoY; Consensus Estimate: 17.32% YoY), with prices pulling back after fifteen months of consecutive increase. Whilst the rise in food prices remained strong in February at 18.53% YoY, the “All Items Less Farm Produce Index” ( a proxy for core inflation) provided the buffer for the headline CPI, moderating for the third consecutive month to 16.01%…

Will Nigerian Equity Markets Rebound in 2017?

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The equity market could be headed for another tough year with economic concerns surrounding FX and weak corporate earnings continue to downplay the attractive valuations of blue chip stocks. We reiterate the strong correlation of the Nigerian equity market to oil prices and with the price of Brent crude oil hovering around $55/bbl coming into 2017, we think losses will be less steep this year with the potential for…

Nigerian Equity Markets: Key Drivers Still Under Siege

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Analysis of market performance in 2016 indicated that although a combination of poor corporate releases as well as weak macroeconomic fundamentals contributed to the negative return for the year, market volatility remained largely consistent with instability in the currency market. More specifically, while bearish sentiments persisted for most of 2016, equities rallied between May and July 2016 due to reforms in the Oil & Gas sector and adoption of…

The World a Better Place for South Africa for South Africa Investors

Posted on by The Editorial Team

JOHANNESBUGH (Capital Markets in Africa) – There are three big themes that we believe will dominate markets in the year ahead. These are Keynes is King, Reflation and South Africa Stabilises. The first two themes are about an improving world and better global growth, while the third theme is South Africa specific and has the biggest impact on the local asset classes in which we invest. Keynes is King The world has shifted. The big…

Investing in African equity markets today: Zimbabwe as a case study for sub-Saharan Africa

Posted on by The Editorial Team

HARARE (Capital Markets in Africa) – A decade after its first disastrous flirtation with hyperinflation, Zimbabwe is once again on the economic precipice with the effects being conspicuously similar. Supermarket shelves have started to empty, some public and even private sector salaries remain unpaid, banking hall queues are getting longer and hospitals are short of basic supplies. Whilst the humanitarian state of affairs is critical we find the microeconomic structures persistently durable given that businesses continue…

Old Mutual Full-Year Profit Slides as South Africa Economy Slows

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Old Mutual Plc, the U.K.-based insurance company, said full-year profit dropped 7.2 percent after the pound weakened after Britain’s decision to leave the European Union and its South African operations contended with the slowest economic growth since the 2009 recession. Net income declined to 570 million pounds ($693 million) in the 12 months through December from 614 million pounds a year earlier, the London-based company said in a statement on Thursday….

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