The Markets

LAGOS (Capital Markets in Africa) – MTN Nigeria Communications Plc surged by 10% in Lagos Monday, the most allowed by the exchange and matching the biggest gain since its May market debut after the country’s Attorney General dropped a $2 billion tax claim against the mobile phone company. The removal of the payment demand is a boost to investor confidence, ending fears of cash outflow, Tunde Abidoye, an analyst at FBNQuest, said by phone from…

LAGOS (Capital Markets in Africa) – Power producers in Nigeria are owed at least $2.7 billion by a state-owned company that buys their output and resells it, threatening their viability and undermining their ability to invest in the energy-starved nation, according to an industry association. Only 60% of residents of Africa’s most populous country have access to electricity and even those who do are plagued by regular outages. While President Muhammadu Buhari has made tackling the power…

LAGOS (Capital Markets in Africa) – The best rally in Nigerian stocks since mid-2017 is underscoring how much more attention investors in Africa’s largest oil producers are paying to the quest for returns rather than worrying about the price of crude. The Nigerian Stock Exchange All Share Index edged 0.1% higher on Friday, bringing its advance this week to more than 9%. The gains, the best performance by any of the more than 90 global…

LONDON (Capital Markets in Africa) – Stocks rose across Europe and Asia and U.S. equity futures climbed on Thursday, extending a relief rally after America and Iran appeared to step back from a deeper military conflict. The yen and gold declined and oil steadied after a plunge.   The Stoxx Europe 600 Index was on course for a third day rising as every major national benchmark increased. Contracts on the S&P 500 pointed to further gains…

NAIROBI (Capital Markets in Africa) – The removal of a cap on Kenyan bank-loan interest rates should help the sector spur gains of as much as 15% for the country’s stocks in the first half of 2019, according to local analysts. The November repeal of a law imposing a ceiling of four percentage points above the benchmark rate will allow banks to “price loans based on the credit risk of borrowers and thus benefit from…

LAGOS (Capital Markets in Africa) –  An MUFG MENA Economic report issued today expects a pick-up in MENA regional growth in 2020 despite heightened geopolitical tensions and weaker energy earnings. The bank’s research forecasts MENA real GDP growth of 2.7% in 2020, from a near-flat 0.1% in 2019, with Saudi Arabia continuing last year’s trend of being the regional outperformer. This performance will remain below the long-term equilibrium average level of 4.2%. According to the…

JOHANNESBURG (Capital Markets in Africa) – Orange SA, France’s biggest phone company, picked BNP Paribas SA and Morgan Stanley to advise on a proposed initial public offering of its Middle East and Africa business, people familiar with the matter said. The banks are helping with preparations for the listing, though an underwriting syndicate hasn’t yet been formalized, the people said. Orange plans to invite more banks to join the deal at a later stage, according to the people, who…