The Markets

LAGOS (Capital Markets in Africa) – Total SA is poised to start exports of crude from a major new offshore field in Nigeria, adding to global supplies at a time when oil prices are plunging. Shipments of Egina crude from a floating offshore production vessel have been scheduled for February, according to a copy of a loading program for the new grade seen by Bloomberg. Initial exports should be just over 100,000 barrels a day but could double in the…

JOHANNESBURG (Capital Markets in Africa) – For South Africa’s cash-strapped weapons company Denel SOC Ltd., there’s one fish that keeps on biting whenever it casts its net into debt markets, and that’s the Public Investment Corp. Earlier this month, the state-owned arms maker issued 290 million rand ($20 million) of government-guaranteed, senior unsecured notes maturing a year from now. The PIC, which manages most of the South African government’s pension-fund money, bought all of that new…

LAGOS (Capital Markets in Africa)  – Global equity markets are getting beaten up, but gold miners have been spared as haven demand swells and bullion’s outlook brightens. Newcrest Mining Ltd., Australia’s top producer, rallied as much as 2.3 percent on Tuesday, while South Africa’s Harmony Gold Mining Co. Ltd. was the biggest mover, rising 3.8 percent. Canada’s Barrick Gold Corp. — which is taking over rival Randgold Resources Ltd. — has surged 28 percent this quarter. The gold miners…

LAGOS (Capital Markets in Africa) – The rand’s implied volatility against the dollar tells you one thing about the currency in 2019: it’s going to be a wild ride. It’s just not clear which way. The cost of hedging in the options market against price swings in the South African currency over the next year has climbed almost 500 basis points since April. Though it has moderated from its September high, it’s still about 200 basis points…