The Markets

JOHANNESBURG (Capital Markets in Africa) – South African government bonds are finding favour with foreign investors, extending a rally even as concerns over the effect of the coronavirus continue to roil global markets. Non-residents bought the most of the debt on a net basis in 16 months on Tuesday, and the order book at Treasury’s weekly auction was the strongest in five weeks. Inflows this year stand at 7 billion rand ($470 million), according to JSE Ltd. data,…

LAGOS (Capital Markets in Africa) – Oil sellers are looking for alternative buyers in Asia for prompt cargoes as Chinese demand dries up because of the coronavirus and some customers ask to defer purchases. The suppliers — including oil majors and trading houses — are offering grades including Russia’s ESPO, Basrah Light from Iraq and Brazilian Lula for delivery in just a few weeks’ time, according to traders in Asia with knowledge of the matter….

NEW YORK (Capital Markets in Africa) – The year’s first fallen unicorn is about to test public markets’ appetite for unprofitable start-ups, and so far it’s not looking like a positive bellwether for the class of 2020.  Mattress retailer Casper Sleep Inc. is planning to cut the target price range for its Wednesday initial public offering, people familiar with the matter said, shrinking its potential market value to well below the $1.1 billion valuations it…

LONDON (Capital Markets in Africa) – European equities turned higher with U.S. index futures and Asian shares on hopes for a breakthrough in fighting the coronavirus, and as investors digested the latest corporate earnings. Treasuries reversed earlier gains. The Stoxx Europe 600 Index rebounded alongside contracts on the three main American gauges after a string of reports on possible vaccines and treatments for the deadly Wuhan virus. Gains in tech and travel shares were supported by PMI readings that suggested the…

ACCRA (Capital Markets in Africa)- Ghana’s government, which is poised to sell as much as $3 billion in Eurobonds this week, would have drawn comfort for a successful deal by Gabon that showed demand for Africa’s high-yielding hard-currency debt remains strong. The West African country is concluding a series of meetings with international bond investors on Monday. Gabon issued $1 billion of securities on Thursday at a yield on the lower limit of the price-guidance range, even…

LONDON (Capital Markets in Africa)- The pound is back in the doldrums as concerns about a chaotic Brexit at the end of the year loom into view. Sterling fell more than 1% to lead losses among Group-of-10 currencies, as traders brace for British Prime Minister Boris Johnson to threaten to walk away from talks with the European Union rather than accept demands from Brussels to sign up to the bloc’s single market regulations. The EU’s chief negotiator Michel Barnier is also…