The Markets | - Part 198

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

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…

Are African Markets Large and Instruments Mature Enough to Sustain CCPs?

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Since the financial crisis, clearing houses – also known as central counterparties (CCPs) – have come to be seen as having a fundamental role in managing risk in financial markets. So far, Africa has lagged behind other regions in adopting CCPs. Do African markets need CCPs? The answer to this question depends on understanding more about the ways in which CCPs contribute to risk management and how much of…

Nigerian Breweries Plc – Staying resilient through tough economic times

Posted on by The Editorial Team

Robust value presence will still be a key driver of topline growth in 2017: The strategy to increase its product offerings in the affordable segments (mainstream and discount) through its merger with Consolidated Breweries in December 2014 proved to be a step in the right direction. Given the weak macroeconomic climate of 2016, many consumers increasingly down-traded to affordable beer brands as a result of lower purchasing power. On the back of its improved offering in…

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….

Nigeria stocks at 1-month high, reserves exceed $30 bln after Buhari return from UK medical leave

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Nigerian equities hit a one-month high shortly after the stock market opened for trade on Friday following President Muhammadu Buhari’s return home from an extended medical leave in Britain. Stocks rose 1.29 percent at 0936 GMT to levels last seen in February, according to Thomson Reuters data. Stocks, which are down 6.3 percent on the year to date, had climbed to a one-week high in its previous session on Thursday….

Egypt’s pound shows Nigeria must overcome its fear of floating free

Posted on by The Editorial Team

CAIRO (Capital Markets in Africa) – A currency devaluation may do little to fix Nigeria’s problems unless it follows the examples of emerging market peers Egypt, Argentina and Russia and embraces floating exchange rates. Grappling with the recession, widespread dollar shortages, a budget funding gap and international lenders’ reluctance to provide loans, Nigeria has moved tentatively to devalue its currency. The naira traded as low as 375 per dollar on Monday versus the official rate of…

Renewed Sell Pressure on NB Drags Nigerian Bourse… NSE ASI down 30bps

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – The All Share Index was unable to sustain yesterday’s positive performance as it fell 30bps to close at 25,055.29 points following renewed sell pressure on NIGERIAN BREWERIES (-3.8%). Consequently, YTD loss worsened to -6.8%, while market capitalisation declined by N25.9bn to settle at N8.7tn. Market activity also softened as volume and value traded dipped 10.8% and 14.6% to 144.4m units and N1.5bn respectively. Bears Retain Grip on FMCGs Despite the decline…

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