The Markets

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…

LAGOS (Capital Markets in Africa) – The U.S. and Iran have lived in a state of hostility for decades, but relations grew tenser over the last year, finally boiling over at the start of 2020 with a U.S. attack that killed Iran’s most prominent military leader. The U.S. has been trying to deprive Iran of oil revenue, the lifeblood of its economy; Iran has responded by exceeding limits it agreed to on its nuclear program,…

LAGOS (Capital Markets in Africa) – Futures on the benchmark U.S. stock gauge turned positive on Wednesday, recovering from a plunge after Iranian missiles struck two American military bases in Iraq. Gold, Treasuries, and oil pared earlier out-sized gains as Iran stressed it didn’t seek war. Contracts on the S&P 500 erased all losses through the European morning to trade in the green after Donald Trump declared “so far so good” regarding an early damage…

LAGOS (Capital Markets in Africa) – Oil cooled off after rallying on Iranian airstrikes against U.S.-Iraqi military bases, amid speculation that Tehran is opting for limited retaliation over the killing of a top general. Futures in London initially surged more than 5% as the Islamic Revolutionary Guard Corps claimed responsibility for the missile strikes in Iraq, and held some gains on the concern of further escalation in the oil-rich region. Yet prices eased after U.S. President…

LAGOS (Capital Markets in Africa) – Nigerian President Muhammadu Buhari is due to complete his second and final four-year term in 2023 and the battle over who will succeed him is already heating up, placing further pressure on an already strained economy. Buhari has thus far shied away from endorsing his deputy, Yemi Osinbajo, for the position, twice slighting him by opting not to transfer power to him while traveling abroad. That may diminish his chances of securing…