African Markets: Factors to watch on April 5
The following company announcements, scheduled economic indicators, debt and currency market
moves and political events may affect African markets on Thursday.
ZAMBIA – Central bank sells 91-, 182- and 364-day Treasury bills at auction.
SEYCHELLES – March inflation data expected. Year-on-year rate rose for sixth
month in a row in February to 5.8 percent.
Asian shares fell on Thursday after a weak Spanish bond sale heightened
concerns about funding difficulties for weaker euro zone countries, further
undermining sentiment hurt by fading expectations of more stimulus from the
U.S. Federal Reserve.
WORLD OIL PRICES
Brent crude rose towards $123 a barrel on Thursday after falling sharply in
the previous session on a big jump in U.S. oil inventories, as investors
covered short positions ahead of a key U.S. economic report and on concerns
over disrutpions to Iranian oil supplies.
Mali’s military rulers on Wednesday postponed a national convention to end a
crisis sparked by a coup, which has led to international isolation and allowed
rebels to seize control of the northern half of the country.
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AFRICA FIXED INCOME
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SOUTH AFRICA MARKETS
* South Africa’s rand weakened as much as 1.2 percent to a seven-week low
against the dollar on Wednesday and government bonds also fell, hit by waning
risk appetite for emerging market assets as recent data points to stuttering
* South African stocks lost ground for the first time in four sessions on
Wednesday, falling more than 2 percent as major miners such as Harmony Gold
tumbled on a faltering bullion price.
* African nations joining the elite club of oil and gas producers should
invest in education and roads while supporting traditional sectors to avoid
the “oil curse” trap, the head of the African Development Bank
* A worldwide rig shortage is delaying oil drilling in east Africa, which is
slowing growth and pushing up costs in one of the industry’s hottest new
exploration areas, industry players and officials said.
* Nigeria’s naira currency was unchanged against the U.S dollar on
Wednesday after the central bank increased dollar supply at the bi-weekly
foreign exchange auction.
* Nigeria Dangote Cement’s profit rises in 2011.
* Nigeria’s central bank said on Wednesday it would auction 183.64 billion
naira ($1.17 billion) in treasury bills at its regular monthly debt auction
KENYA RATES, MARKETS
* Kenyan average interbank rate slumped to 12.7 percent on Wednesday from 18.8
percent a day earlier.
* Kenya’s central bank held its key lending rate at 18 percent on
Wednesday, saying inflation was still above the government’s short-term target
of 9 percent and that private sector credit growth remained too high.
* Weighted average yields fell across the board at Kenya’s Treasury bill
auction on Wednesday, with investors favouring longer dated paper, central
bank data showed.
* The Kenyan shilling ended a fraction stronger against the dollar on
Wednesday, with the market closing minutes after the central bank opted to
keep its key interest rate on hold, in line with analysts’ expectations.
* Ugandan 91-day Treasury bill yield rise above 18 percent.
* The Uganda shilling climbed for a third consecutive day against the
dollar on Wednesday, lifted by offshore investors converting their greenbacks
to participate in a Treasury bill auction, and depressed corporate demand for
the U.S. currency.
* Stanbic Bank Uganda’s 2011 profit leaps 84 percent.
TANZANIA BONDS, ECONOMY
* Bank of Tanzania sells 24.2 billion shillings of 7-year Treasury bonds at
average weighted yield of 14.6289 percent.
* Tanzania’s energy regulator on Wednesday raised the prices of petrol, diesel
and kerosene in east Africa’s second-biggest economy, citing higher
international oil prices.
Botswana’s economy contracted 5.8 percent quarter-on-quarter in the fourth
quarter of last year from 5.5 percent in the previous three months due to a
sharp reduction in mining output in the world’s biggest diamond
Mauritius sells $48.4 million worth of 3-yr Treasury notes at an average
weighted yield of 5.14 percent.
Malawi 3-month Treasury bill yields fall to 6.3 percent.
Djibouti’s economy will expand 4.8 percent this year from 4.4 percent in 2011,
driven by an acceleration of port activities, construction and services, the
International Monetary Fund said on Wednesday. Reuters
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