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Zambian Eurobond to test appetite for African debt
November 11, 2011--Zambia's planned $500 million Eurobond will be welcomed by investors eager to increase their exposure to frontier market debt but the timing, as yet unknown, will be crucial given the global environment, analysts say.
In its 2012 budget, announced on Friday, the Zambian government said it would press ahead with the previous administration's plans to launch a 10-year Eurobond. Finance Minister Alexander Chikwanda stressed the country, Africa's biggest copper producer, would manage its debt prudently.
"The external environment is driving a lot of considerations at the moment and therefore finding a window of opportunity in the market so the issuer can get the best possible terms will be a crucial factor," said Stuart Culverhouse, chief economist at Exotix.
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Source: Reuters
SA stocks lose steam at end of volatile week
November 11, 2011-- South African stocks capped a volatile week with a sideways close on Friday, as concerns about the outcome for Italy’s debt crisis kept investors on the sidelines, although platinum miners and other battered-down shares ticked higher.
Shares of private hospital group Netcare rose nearly 3%, after the company said it expects to report an increase of up to 26% in full-year earnings on Monday.
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Source: FIN24
Rand ends week stronger against dollar
November 11, 2011--The rand extended gains against the dollar to 1.4% on Friday, hitting a two-day high as risk sentiment improved after a positive austerity vote out of Italy.
The rand was at 7.8730 against the dollar by 1545 GMT after earlier hitting 7.8620, its strongest level since Wednesday.
However, government bonds were weaker as the market priced out the chance of a rate cut after a hawkish monetary policy statement while the rand jumped against the dollar as global sentiment turned pro-risk.
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Source: FIN24
Bonds weaken after rates kept steady
November 11, 2011-- South African bonds were up to 14 basis points weaker in midday trade on Friday, which a trader said was as a result of selling on the back of the South African Reserve Bank's (Sarb's) monetary policy committee (MPC) decision to keep the repo rate unchanged at 5.5% on Thursday.
"I think most of the guys were heavily skewed for a rate cut and then just bailed after it didn't happen; I believe there were some good selling curves from a local at 57-58 this morning and that made matters worse for the long accounts. We're fairly toppish up here though," the trader said.
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Source: FIN24
SA stocks shrug off rates decision
November 10, 2011--South African stocks rose 0.71% on Thursday, as miner Anglo American jumped on news of a $5.4 billion asset sale, while investors returned to battered firms such as Sappi .
The stock market shrugged off the central banks’s decision to keep interest rates steady, as expected, and broader gains were limited by concerns about the outlook for Europe.
Stocks did briefly extend gains after the ruling African National Congress said it would suspend for five years the controversial leader of its youth wing, who has called for nationalisation of both banks and mines.
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Source: FIN24
Rand firms on Sarb inflation concerns
November 10, 2011--The rand gained against the dollar on Thursday after the central bank said the inflation outlook had deteriorated, diminishing some market players’ hopes there could be another rate cut to support a weak recovery.
The Reserve Bank left the repo rate unchanged at 5.5% and said it was concerned about inflation.
Central Bank Governor Gill Marcus said while the Monetary Policy Committee considered a cut, the decision to leave rates unchanged was unanimous and none of its seven members advocated for further monetary loosening.
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Source: FIN24
Rand, JSE hammered by EU woes, Moody's
November 9, 2011--South African stocks posted their biggest one-day loss in five weeks on Wednesday, dropping 2.3% as fears about the outlook for Italy’s debt crisis pushed investors to sell off recent gainers such as miners and banks.
That, coupled with a ratings outlook downgrade of the domestic economy, added to market fears over the euro zone debt crisis, pushing the rand down 2.8%.
Yields on government debt ended 11 basis points higher on the 2015 issue and jumped 12 points on the 2026 bond partly as the most liquid government bonds reacted to Moody’ s rating agency cutting South Africa’s A3 rating outlook to negative from stable.
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Source: FIN24
Bonds edge up on rate cut speculation
November 9, 2011-- The rand was steady on Wednesday after closing firmer against the dollar overnight, boosted in part by speculative inflows into the bond market as some players bet on the slight chance the Reserve Bank might cut interest rates on Thursday.
An overwhelming majority of economic analysts polled by Reuters last Friday expect the repo rate to stay on hold at 5.5%, after the last cut in November last year, as the Reserve Bank eyes rising inflation.
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Source: FIN24
Treasury downplays Moody's downgrade
November 9, 2011--South Africa played down suggestions from Moody's on Wednesday that political pressure could lead to a further deterioration in public finances, saying Pretoria is committed to a sustainable fiscal path.
"Our debt metrics have not deteriorated compared to our counterparts and also if you look at how we are managing our debt, we've made it clear that although the deficit is widening we are not borrowing more," Treasury spokesperson Bulelwa Boqwana said.
Ratings agency Moody's cut South Africa's A3 rating outlook to negative from stable, voicing concern that pressure from unions and black voters wanting greater economic redress for the ills of apartheid could erode the country's finances.
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Source: FIN24
Pan-African exchange Bourse Africa to commence operations in mid-2012
Financial Technologies-promoted exchange is based on a pan-African operating model
November 9th, 2011--Bourse Africa Limited (BAL), the first pan-African commodity spot and multi-asset class exchange, will commence operations in mid-2012. BAL is establishing a pan-African exchange platform in Botswana and a network of linked exchanges, fully localized in national and regional markets across the continent.
A formal launch announcement to this effect was made by Mr. Shreekant Javalgekar, Director (Finance), Financial Technologies (India) Limited (FTIL), at the International Convening on Commodity Exchanges in Africa, held in Addis Ababa, Ethiopia, from 8th-9th November, 2011. Mr. Javalgekar was accompanied by Mr. Chris Goromonzi, MD & CEO, BAL; Mr. Denys Denya, Executive Vice President, African Export Import Bank (Afreximbank); and Mr. Lamon Rutten, Director of BAL and MD & CEO of Multi Commodity Exchange of India (MCX).
BAL is promoted by Financial Technologies (India) Limited (FTIL), the flagship company of India-based Financial Technologies Group (FT Group), a global leader in offering technology solutions and domain expertise to create and operate financial markets in multi-asset classes across Africa, the Middle-East, India and the Far East. The FT Group operates a network of nine exchanges including MCX, the world’s fifth largest commodity futures derivatives market in terms of contracts traded (January to June 2011, based on Futures Industry Association (FIA) statistics). BAL will leverage FTIL’s ‘best-in-breed’ technologies across the exchange and clearing space. It will also be supported by the Group’s ecosystem ventures engaged in providing solutions such as warehouse receipt financing, market information and capacity-building, among others.
“BAL, based on its network of linked exchange strategy, will integrate Africa by facilitating trading, hedging and investment opportunities in national, regional and continental assets for African and international users. FTIL is extremely pleased to be working with its African partners in turning this strategy into a ground reality. BAL endeavours to be a world class venue for regulated investment in the African continent, alongside the increasingly dominant venues seen today across Asia and the Middle East,” said Mr. Javalgekar.
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Source: Bourse Africa Limited
