The Markets

JOHANNESBURG (Capital Markets in Africa) – The challenges to South Africa’s credit outlook was highlighted by President Cyril Ramaphosa’s state-of-the-nation address, Fitch Ratings said. While Ramaphosa promised progress in his speech on Thursday, he offered only partial detail on key policy areas, including stabilizing the electricity sector, improving public finances, accelerating economic growth and land reform, the rating company said in an emailed statement on Friday. Ramaphosa announced changes to the nation’s electricity industry to…

LAGOS (Capital Markets in Africa) – Sibanye Gold Ltd. said it swung to an annual profit last year, bringing the company another step closer to resuming dividend payouts. Sibanye is among South African producers benefiting from a rally in platinum, palladium and rhodium prices and a weaker South African rand that lowers costs for producers. Chief Executive Officer Neal Froneman said last month Sibanye may declare its first dividend in three years in August. The world’s largest platinum miner expects…

JOHANNESBURG (Capital Markets in Africa) – Gabon may issue another Eurobond before the end of the year as it looks for ways to lower the cost of its debt. OPEC’s second-smallest oil producer issued Africa’s first Eurobond of 2020 last month. The government will monitor how the market performs in six months and then assess its needs, Finance Minister Jean-Marie Ogandaga said by phone from the capital, Libreville. Gabon went to the market asking for…

NEW YORK (Capital Markets in Africa) – As currency-trading heads from investment firms and banks convene in Miami this week, a few themes may dominate: The potential for new technology to lower costs, the impact of the coronavirus and U.S. elections. In a sign of the changing landscape as the TradeTech FX conference kicks off, a pre-summit survey showed investors view trading with liquidity providers other than banks as a key goal. Meanwhile, companies that…

NEW YORK (Capital Markets in Africa) – U.S. equity-index futures gained along with European stocks on Wednesday and crude oil rallied amid signs the spread of the coronavirus in China is slowing and investor optimism the global economy can weather the storm. Treasury yields edged higher. Contracts on all three major American gauges pointed to a firm open after China’s Hubei province reported the lowest number of new virus cases this month and suspected infections on the…

LAGOS (Capital Markets in Africa) – More jumbo bond sellers in Europe may include sterling tranches as a Brexit-fueled decline in borrowing costs bolsters the appeal of a diversified investor base. Siemens AG is marketing a benchmark five-year pound bond on Tuesday, together with a four-part euro benchmark offering. LVMH Moet Hennessy Louis Vuitton SE and Comcast Corp. also sold pound notes alongside euro tranches last week, following a decline in sterling bond yields caused by expectations for an interest-rate cut. On…

BENIN (Capital Markets in Africa) – Benin is considering to again sell euro-denominated bonds in 2020 as the West African nation seeks to benefit from strong demand for the continent’s high-yielding foreign-currency debt, according to people familiar with the matter. The $10-billion economy, which sold a debut offshore bond of 500 million euros ($548 million) in March, will probably sell a bigger amount of debt in an issuance that would probably take place in the second…