The Markets

JOHANNESBURG (Capital Markets in Africa) — The rand hasn’t hit rock bottom yet. Even after falling to its weakest level on record against the dollar this week, South Africa’s currency has a better chance of extending the decline in the coming months than rallying to stronger levels predicted by analysts in a Bloomberg survey, options pricing suggests. The rand is on track for a 5.8% drop against the dollar this week, the worst performance among emerging-market currencies….

LAGOS (Capital Markets in Africa) — Nigeria is faced with an economic challenge that is unprecedented in its history and will need radical reforms to overcome it, the presidency said. “What we will need to do is something that is bold, radical and one that our people can understand and buy into,” Vice President Yemi Osinbajo said in an emailed statement. The government will pursue mass housing, increase agricultural production, ensure improved local productivity through…

LAGOS (Capital Markets in Africa) — The Nigerian currency depreciated to its weakest level since February 2017 in the unofficial black market after the country’s central bank cut supply to dealers. The local unit traded at 415 naira per dollar according to abokiFX.com, which collates rates from street-traders in Lagos. In the official spot market, the naira traded 386.51 per dollar as of 4:15 pm in Lagos, the highest it has traded in 24 years….

LONDON (Capital Markets in Africa) — As the world scrambles to fight the deadly coronavirus, a microcap U.K. pharmaceutical company has seen its stock surge. Shares in Synairgen Plc have soared 845% this year, with gains accelerating in mid-March after the company got approval from U.K. regulators to start trials of its drug, SNG001, in people hospitalized with Covid-19. The company has a market capitalization of just 67 million pounds ($83 million), even after the share-price jump….

LONDON (Capital Markets in Africa) – This podcast by Baillie Gifford explores how investors can navigate a stock market crisis. To listen to the podcast  

HARARE (Capital Markets in Africa) — Zambia’s Eurobonds extended losses on Wednesday and its currency tumbled to a record low after Africa’s second-biggest copper producer asked banks for proposals on reorganizing as much as $11.2 billion of foreign debt. The country “intends to implement a liability management of its external debt portfolio to lengthen maturity and enhance its capacity to meet debt-service obligations,” the finance ministry said in a request for proposals sent to lenders,…