The Markets | - Part 175

How EM Bonds Help Explain the Global Financialization of Assets

LAGOS (Capital Markets in Africa) – Would you like a little Ivory Coast with your 16-year Senegalese securities? Perhaps some Ukrainian debt to go with your Iraqi five-year bonds? For something really unusual, try the Argentine 100-year bonds. A spate of frontier and emerging-market bond sales stretching from the grassy highlands of Mongolia to the lush tropics of Sri Lanka have underscored investor appetite for financial assets of all stripes in recent years. While many…

Traders Lured by High-Yield `Sweet Spot’ in Emerging Markets

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LAGOS (Capital Markets in Africa) – Traders are gaining confidence in nations that pay the steepest local interest rates. Investor anxiety, as measured by one-month implied currency volatility, dropped to multi-month lows last month in Russia, South Africa and Brazil — countries with some of the most generous yields on their local government debt. Those nations are benefiting from demand for their bonds as interest rates in the developed world stay suppressed amid a pickup…

Kenyan Growth Jitters Rekindled as Court Orders Ballot Rerun

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NAIROBI (Capital Markets in Africa) – Kenya’s economy may pay the price of opposition leader Raila Odinga’s successful bid to nullify the outcome of last month’s election, as prolonged political uncertainty pending a court-ordered rerun weighs on growth and investor confidence. “There was a lot of exuberance that the elections were over,” Kenneth Minjire, head of securities at Genghis Capital in Nairobi, said by phone. “Inquiries had shot up from private-equity firms, from foreign investors, who…

Mobius Foresees Cryptocurrency Crackdown Sparking a Rush to Gold

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LAGOS (Capital Markets in Africa) – Mark Mobius is sensing danger in the explosive growth of cryptocurrencies. Governments will begin clamping down on digital currencies because of their use in illicit financing, with terrorist groups to drug dealers contributing to their rise, Mobius, executive chairman at Templeton Emerging Markets Group, said in an interview in Hong Kong Monday. “Cryptocurrencies are beginning to get out of control and it’s going to attract the attention of governments around…

China’s Central Bank Declares Initial Coin Offerings Illegal

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LAGOS (Capital Markets in Africa) – China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales. The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have…

Acacia Drops Most Since July on Output Cut Over Tanzania Row

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DAR ES SALAAM (Capital Markets in Africa) Acacia Mining Plc shares dropped the most since July as the company will stop underground production at Tanzania’s Bulyanhulu mine until a dispute with the government over taxes and exports is resolved. The stock declined as much as 15 percent, the most since July 25, as Acacia cut its output forecast to about 750,000 ounces, from 850,000 to 900,000 ounces, for this year. It traded down 8.9 percent by 11:31…

Kenyan Assets Jolted by Ruling That May Deliver Long-Term Gains

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NAIROBI (Capital Markets in Africa) – Short-term pain, long term gain is the prognosis for Kenyan assets after a landmark court ruling that nullified last month’s presidential election and ordered a fresh poll. Yields on Kenya’s foreign debt climbed the most in almost two months, the shilling weakened and stocks tumbled after the judgment. But for investors willing to look past the immediate political risks, it’s good news, according to JPMorgan Asset Management. The court upheld an…

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