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IMF Working paper-Bond Markets in Africa
January 14, 2013--Summary: African bond markets have been steadily growing in recent years, but nonetheless remain undeveloped. African countries would benefit from greater access to financing and deeper financial markets.
This paper compiles a unique set of data on corporate bond markets in Africa. It then applies an econometric model to analyze the key determinants of African government securities market and corporate bond market capitalization. Government securities market capitalization is directly related to better institutions and interest rate volatility, and inversely related to the fiscal balance, higher interest rate spreads, exchange rate volatility, and current and capital account openness. Corporate bond market capitalization is directly linked to economic size, the level of development of the economy and financial markets, better institutions, and interest rate volatility, and inversely related to higher interest rate spreads and current account openness. Policy implications follow.
view the IMF Working paper-Bond Markets in Africa
Source: IMF
Industrials, platinums weigh on JSE
January 14, 2013--The JSE ended slightly lower on Monday, dragged down by platinum stocks and the broad sell-off in the retail sector following Shoprite Holdings' trading update.
At 17:00‚ the All Share [JSE:J203] index was down 0.34% to 40 144.07 points‚ with the Top 40 - (Tradeable) [JSE:J200] index edging down 0.33% to 35 673.42‚ while the platinum and industrial indices shed 1.10% and 0.87%‚ respectively.
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Source: FIN24
Bonds in demand after Fitch downgrade
January 14, 2013--Government bonds rallied on Monday, pushing the yield on the 13-year benchmark to a 6-month low as demand resumed after a sell-off last week prompted by a downgrade from Fitch.
The rand also pulled back from last Friday's 5-week low against the dollar, although a renewed bout of selling could easily set it back on track towards last November's volatile 8.80-9.01 range.
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Source: FIN24
Top 40 index hits another record
January 14, 2013--South Africa's benchmark Top 40-(Tradeable) [JSE:J200] stock index hit a record high on Monday, edging up 0.3% on a rise in mining companies African Rainbow Minerals [JSE:ARM] and Exxaro Resources [JSE:EXX].
The Top 40 touched 35 947.93, the highest in its 17-year history.
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Source: FIN24
Gold counters gain on weaker rand
January 11, 2013--The JSE closed flat on Friday with gold miners the biggest gainers because of the weaker rand after the Fitch downgrade.
“The rand downgrade yesterday put pressure on our local currency and caused negativity in the rest of the market. Resources suffered today as a result causing a sell-off of riskier assets such as commodities. There was a general sell-off across the market‚ with commodities dipping the most as they form the biggest part of our economy. The JSE traded slightly in the red the whole day‚” a local trader said.
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Source: FIN24
Rand weakens further on Fitch cut
January 11, 2013--Political risk continued to weigh on the rand on Friday afternoon, with concerns over the downgrade by Fitch being the primary driver of slower trade.
“This afternoon it’s been pretty quiet. The downgrade was definitely the trigger that set the rand to a lower level‚” said Ockert van Niekerk‚ head of trading at PSG.
At 3:11‚ the rand was bid at R8.7055/$ from its previous close of R8.6566/$. The local currency was bid at R11.5385/€ from its previous close of R11.4872/€ and at R14.0135/€ against sterling from R13.9807 before.
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Source: FIN24
Nigeria: Nigeria's Foreign Direct Investment Hits U.S.$6 Billion
January 11, 2013--The Central Bank of Nigeria (CBN) has announced that the Nigeria aggregate foreign capital inflows in the last quarter of 2012 stood at $6.07 billion against $3.43 billion and $3.24 billion recorded in Q2, 2012 and Q3, 2011.
This shows increases of 87.39 and 77.09 per cent, respectively.
In its latest report, the CBN said of the total capital inflows, foreign direct investment (FDI) accounted for 23.79 per cent while portfolio investment (PI) accounted for 76.21 per cent.
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Source: AllAfrica.com
Nigeria: Stock Market-Domestic Investors Increase Stakes to 41 Percent
January 11, 2013--Local investors on the floor of the Nigerian Stock Exchange have increased the stake to 41 per cent leaving the remaining 59 per cent in the hands of foreign investors.
The latest report monitored by LEADERSHIP showed that the domestic investors previously held 30 per cent of investment in the stock market but between January and December 2012, it was increased to 41 per cent, a development which has been described by market watchers as a good omen for the growth of the market.
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Source: AllAfrica.com
Platinums, Draghi pare JSE losses
January 10, 2013--The JSE closed softer on Thursday, off its intraday record high, with platinums providing a boost on the higher price of the metal due to positive global market sentiment.
“Platinums had a great day today after European Central Bank head Mario Draghi said that there will be an increase in European growth in the latter part of this year and the ECB left rates unchanged‚ which is good for global market sentiment‚” said Andrew Flavell trader at Consilium Securities.
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Source: FIN24
Bonds soften on weaker rand
January 10, 2013--The SA bond market softened on Thursday afternoon, taking a breather after a three-day rally on particularly strong foreign interest in the long-end of the yield curve.
The weaker rand/US dollar exchange rate is also responsible for a pullback in the SA fixed income market‚ said Sarel Pretorius‚ a trader at Thebe Stockbroking.
At 15:27 the benchmark R186 was trading at 7.140% from Wednesday’s close of 7.100%. The R157 was trading at 5.325% from 5.290% at its previous close and the R207 was bid at 6.180% and offered at 6.150% from its previous close of 6.145%.
The rand weakened to R8.6453 to the greenback in from R8.5999 previously.
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Source: FIN24
