The Markets

LAGOS (Capital Markets in Africa) – A growing divergence in Nigeria’s bond and equity markets may continue, as a president who’s wary of free markets extends his term for another for years. After Muhammadu Buhari won a resounding victory in his bid for re-election as Nigeria’s president, stocks slumped among the most in the world last week. Meanwhile, local bonds gave the biggest returns within EM, according to Bloomberg indexes. What gives? For equity investors,…

LONDON (Capital Markets in Africa) – The pound is outperforming peers this year and as fears of a no-deal Brexit recede, strategists see all signs pointing to more strength. There is now just a 9 percent chance that the U.K. will leave the European Union at the end of March without an agreement, according to a Bloomberg survey of banks. Much more likely is that Britain’s exit will be delayed or even that Prime Minister Theresa…

LONDON (Capital Markets in Africa) – Debenhams Plc fell as the U.K. department-store chain scrapped its profit guidance after saying talks with creditors will be more disruptive than expected. It was the fourth profit warning since early 2018 for Debenhams, which stuck to plans to shut about 50 stores as it seeks a more comprehensive restructuring after securing a temporary lifeline. Options could include issuing new shares, a debt-for-equity swap or insolvency procedures. Though sales stabilized…

LAGOS (Capital Markets in Africa) –  South Africa’s rand, Turkey’s lira and Brazil’s real may be among the worst-performing emerging-market currencies in the past month, but Morgan Stanley isn’t giving up hope. The lender’s VIRP model, which produces buy and sell signals based on volatility and idiosyncratic risk premia, remains long on those units, as well as Russia’s ruble, even as a rally in developing-nation assets loses steam amid rising geopolitical risks and lingering concerns over a…

LUANDA (Capital Markets in Africa) – Angola will ship the least crude oil in at least 11 years in April, suggesting structural issues afflicting the nation’s production are increasingly hurting its biggest source of export revenue. Exports will drop to 1.31 million barrels a day in April, the smallest outflow since at least March 2008, according to copies of loading programs seen by Bloomberg. Angola, Africa’s second-largest producer, is among members of the Organization of Petroleum Exporting…

LAGOS (Capital Markets in Africa) – Nigeria implemented its portion of the OPEC+ production deal in February, said the country’s oil minister, a move that enhances the impact of supply cuts that have already boosted crude prices. “We’re basically complying, effective February” with the country’s pledged 53,000 barrel-a-day reduction, Minister of State for Petroleum Emmanuel Ibe Kachikwu said in an interview on Thursday. “The price fluctuations mean OPEC needs to be a bit more together, a bit…

LAGOS (Capital Markets in Africa) – Singapore’s sovereign wealth fund GIC Pte was among investors that helped U.S. cryptocurrency exchange Coinbase Inc. raise $300 million last year, according to people familiar with the matter. While Coinbase said it garnered investment in its October funding round from firms including Tiger Global Management, Wellington Management and Andreessen Horowitz, GIC’s participation hasn’t previously been disclosed. GIC declined to comment, while an official for Coinbase also declined to comment. With the foray into digital assets, possibly…