The Markets

NEW YORK (S&P Global Ratings) Aug. 17, 2022–Emerging markets (EMs) have been experiencing significant net portfolio outflows over the past few months, according to S&P Global Ratings (see attached report). Tightening financing conditions, expectations of economic slowdown in developed economies, as well as geopolitics are all contributing to portfolio outflows from EMs, particularly from China. External environment for EMs is currently worsening, and we expect pressures on EM assets to remain. A more polarized political…

CAIRO (Capital Markets in Africa) – Egypt became a prime destination for hot money by tethering its currency and boasting the world’s highest interest rates when adjusted for inflation. But five months after Egypt devalued the pound, investors say the central bank would need to let it weaken further before they return, after pulling some $20 billion from the local debt market since the start of this year. The central bank has denied that a…

LAGOIS (Capital Market in Africa) – African nations in search of cheaper financing still have the option to seek budget support from multilateral institutions and issue green bonds as eurobond yields surge, according to Oxford Economics Africa.   Of the 74 emerging sovereign dollar bonds tracked in a Bloomberg index, more than half of the worst-performing securities in the month to date are in Africa. That’s pushed the average eurobond yield on the continent to levels last seen…

LAGOS (Capital Markets in Africa) – Nigerian Exchange Ltd., plans to start a blockchain-enabled exchange platform next year to deepen trade and lure young investors to the market. The move follows the introduction of regulations to guide trade in digital assets by the Nigerian Securities and Exchange Commission, and the growing interest to adopt the distributed-ledger technology by businesses and policy makers across the continent including in Kenya and South Africa.The exchange looks to deploy the blockchain…

LUANDA (Capital Markets in Africa) –  With about 200 people counting down to Banco BAI’s share debut, Angola’s stock exchange finally got off the ground.  BAI, the southwest African nation’s biggest lender, had 20 buy orders at 21,650 kwanzas ($50) on the bourse known as Bolsa de Divida e Valores de Angola, or Bodiva, 5% more than the the initial public offering price. But there were no sellers.  “Today we have reached a new historic…