Nestle Nigeria slows capex as consumers feel devaluation pinch

LAGOS (Reuters) – Nestle Nigeria’s chief executive expects the firm’s capital expenditure to slow to its lowest level in five years after a currency devaluation dampened customer spending in Africa’s biggest economy. Dharnesh Gordhon told Reuters Africa Investment Summit that consumers in Africa’s most populous nation were suffering from the devaluation triggered by a sharp drop in the price of oil, Nigeria’s main export. A raging Islamist insurgency in the north had also limited the…

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African Market Watch: Monday, 2nd March 2015

African Market Watch: Monday, 2nd March 2015

Egypt: The Egyptian Exchange (EGX) indices rallied on Monday, gaining nearly EGP 5.8bn, amid a buying spree among local institutions. The benchmark index EGX30 rose 1.86% – its biggest one day gain in a month and a half – to close at 9456.33 points. Monday’s turnover amounted to EGP 492.2 mn, while traded volume reached 106mn shares. The small and mid-cap index EGX70 also gained 1.34% to 565.16pts, while the broader index EGX100 shut 1.30%…

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Nigeria’s bank ratings placed on CreditWatch negative

Nigeria’s bank ratings placed on CreditWatch negative

 Standard & Poor’s placed the ‘BB-‘ long-term issuer credit rating on Access Bank, First Bank of Nigeria, Guaranty Trust Bank, Stanbic IBTC Bank and Zenith Bank on CreditWatch with negative implications, following similar action on Nigeria’s sovereign ratings. It expected the Nigerian banking sector to face difficulties in 2015. Also, it said that low global oil prices, the pressure on the Nigerian naira, the upcoming presidential elections and the regulatory changes are raising credit risks,…

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Nigeria’s external shocks raise economic vulnerabilities

Nigeria’s external shocks raise economic vulnerabilities

Merrill Lynch projected Nigeria’s real GDP growth to decelerate to 3.5% in 2015 from an average annual growth rate of 5% between 2011 and 2014, due to the large terms of trade shock that has resulted from lower global oil prices. It said that the depreciation of the Nigerian naira would increase inflationary pressure and would weigh on domestic consumption that is heavily dependent on imports. In addition, it forecast the inflation rate to average…

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African Market Watch: Friday, 27th February 2015

African Market Watch: Friday, 27th February 2015

Egypt: The Egyptian market was closed today. Ghana: Trading activity remained high with impressive volume and turnover being recorded at today. At the close of trading fourteen equities had their shares being traded in with total volume of 87,531 shares with market capitalization valued at GHC63.6bn. Likewise, the indices returned to positive, the benchmark Composite Index went up 15.4pts to close at 2,177.95pts; this brings its year-to-date change to -3.67%. Similarly, the Financial Index also rose…

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African Market Watch: Thurs, 26th February 2015

African Market Watch: Thurs, 26th February 2015

Egypt: Egyptian stocks fell to the lowest level in more than five weeks on the back of intensive profit taking operations. The benchmark index EGX30 lost 1.43% to close at 9334pts. The index resumed its sharp decline for the second session in row to hit its lowest level since the middle of last January. The EGX70, which measures small and mid-cap stocks, went down 0.88% to close at 558pts and the broader index lost 0.86% at…

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African Market Watch: Wed, 25th February 2015

African Market Watch: Wed, 25th February 2015

Egypt: The Egyptian Exchange (EGX) indices have plummeted on Wednesday, as the market capitalization lost around EGP6.4bn.  Today, EGX indices have pulled down on the back of strong selling pressures from both local institutions and Arab retail traders. The benchmark EGX30 has slipped 1.48% or 142 pts to 9469.08pts. The benchmark has major support zone at level of 9433 pts on the short-term and upon crossing it the index will re-test levels of 9780 and…

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