The Markets

LAGOS (Capital Markets in Africa) — The frenzied rally in Bitcoin lost momentum on Tuesday after prices hit a new all-time high of $48,000. The cryptocurrency pulled back in the early U.S. hours, trading up 2.9% on the day around $46,000. Prices are still up more than 30% since the beginning of February. While the trading action was calmer, there’s still a fierce debate over whether Tesla’s $1.5 billion investment in Bitcoin will lead to…

ACCRA (Capital Markets in Africa) — Ghana’s stocks may snap three years of declines in 2021 as an improving economy and a more stable cedi attract foreign investors, according to Ecobank Development Corp., which expects local bank and oil-company shares to be in demand. The benchmark Ghana Stock Exchange Composite Index of 31 shares is set to gain as much as 15% this year, Nene Lomo Nartey, head of trading and sales at EDC, said in…

ADDIS ABABA (Capital Markets in Africa) — Ethiopia’s Eurobonds slumped, sending yields to their highest levels in more than eight months after Fitch Ratings said the nation’s decision to seek debt relief raised the risk of default. The yield on $1 billion of notes due in December 2024 jumped 68 basis points to 9.16% by the close in London on Tuesday. Fitch downgraded the Horn of Africa nation’s long-term foreign currency debt rating by one…

LAGOS (Capital Markets in Africa) — Hedge funds VR Capital Group Ltd. and Farallon Capital Partners LP have filed lawsuits against both Credit Suisse Group AG and the government of Mozambique over a $2 billion debt scandal. VR Capital, which is led by Richard Deitz, and Farallon are suing the investment bank in London over its involvement in arranging loans for a series of unsuccessful maritime projects in the southern African country, according to a legal…

NEW YORK (Capital Markets in Africa) — GameStop Corp.’s rally fizzled further in premarket trading, meaning the stock has now given up about 70% of the spectacular gains that were fueled by last month’s attack on short-sellers from Reddit day traders. The stock traded at $134 as of 8:30 a.m. in New York, that’s about $349 below Thursday’s record intraday peak of $483. The video-game retailer’s market value has dwindled by $24.3 billion to $9.4…

NEW YORK (Capital Markets in Africa) — The wild run-up of trades popular with Reddit crowds is starting to come crashing down. GameStop Corp. sank 44% in U.S. pre-market trading, extending a 31% plunge on Monday. AMC Entertainment Holdings Inc. slid 32% and Express Inc. lost 22%. Silver tumbled more than 5% after surging to an eight-year high. The speculative activity hatched online has captivated global markets, drawing attention from U.S. politicians and overwhelming brokerages around…

MAPUTO (Capital Markets in Africa) — Argentina, Mozambique, Barbados and the Republic of Congo have two things in common: They’ve all restructured their debt, and they’ve all tangled with Greylock Capital Management. Now Greylock, one of the best-known hedge funds in emerging markets investing, finds itself at a similar crossroads. Some 25 years after its founding, the firm — its assets headed to a mere $350 million or so by the end of March —…