African Markets – Factors to watch on May 16
The following company announcements, scheduled economic
indicators, debt and currency market moves and political events may affect African markets on
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KENYA-The central bank offers 2 billion shillings of 182-day
Treasury bills at auction.
UGANDA-The central bank offers 120 billion shillings of Treasury
bills at auction.
TANZANIA-The central bank offers 30 billion shillings of 9.18
percent 5-year Treasury bonds at auction.
Asian shares fell and the dollar rose broadly on Wednesday after
efforts to form a new government in Greece collapsed, fuelling fears
that a second election in June could precipitate Athens’ exit from
the euro zone and deepen the bloc’s debt crisis.
WORLD OIL PRICES
Oil prices fell more than $1 on Wednesday as a larger-than-expected
rise in crude stocks in top consumer United States and fears of
Greece’s exit from the euro zone muddied the outlook for demand
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AFRICA FIXED INCOME
For African fixed income auctions this week, click on
SOUTH AFRICAN MARKETS
* South Africa’s rand extended losses to hit the year’s weakest
level against the dollar on Tuesday as risk sentiment soured
further, though bonds held steady on support from good German growth
numbers and a better than expected domestic auction.
* South African stocks inched lower on Tuesday, as gold miners such
as Gold Fields were hammered by a drop in the price of
bullion, although losses were limited by a rise in heavyweights
Naspers and MTN Group .
NIGERIA INFLATION, RISKS
* Nigeria’s inflation rate rose to 12.9 percent in April, year on
year, driven largely by non-food items and a very price stable
comparative month in April last year, data from the National Bureau
of Statistics showed on Tuesday.
* For FACTBOX on key political risks to watch in Nigeria.
Gunmen detonated grenades outside a night club in the Kenyan coastal
city of Mombasa on Tuesday, killing one person and wounding several
others in the latest attack since Kenya sent troops into Somalia to
crush Islamist militants.
KENYA MARKETS, ECONOMY
* Kenya’s central bank sold dollars directly to commercial banks on
Tuesday, lifting the shilling off early lows, while Kenyan
shares inched up for the fourth straight session.
* Kenya cut its economic growth forecast for 2012 on Tuesday saying
high interest rates, soaring fuel costs and lower investment ahead
of a general election would slow expansion in east Africa’s biggest
* Kenya plans to start negotiations on a sovereign bond after
agreeing to borrow $600 million in a debut two-year syndicate loan
from foreign creditors at an interest rate of 4.75 percent above
Libor, the finance minister said on Tuesday.
The Ugandan shilling weakened as much as 1.1 percent against
the dollar on Tuesday, pressured by dollar demand from the energy
sector, but traders forecast the local currency would rebound on
potential dollar inflows after a Treasury auction.
Tanzania’s year-on-year inflation rate fell for the fourth straight
month in April on lower food and energy costs, but analysts said the
decline was too slow and forecast the rate to remain in double-digit
figures for the rest of the year.
RWANDA INFLATION, BRALIRWA
* Rwandan brewer Bralirwa’s full-year net profit soared 42
percent on higher pricing, new brands and rising sales of its beer
brands and soft drinks, the company said on Tuesday.
* Consumer prices in Rwandan urban centres rose 0.24 percent in
April from March, slowing the year-on-year rate of inflation to 6.95
percent, the lowest since September last year, from 8.18 percent a
State Bank of Mauritius 9-month profit up 25 pct
Zimbabwe CPI quickens to 4.03 pct y/y in April.
BOTSWANA INFLATION, BILLS
Botswana inflation slows to 7.5 percent year-on-year in April.
Botswana 14-day T-bill yield at 4.41 percent.
The International Monetary Fund urged new Senegalese President Macky
Sall on Tuesday to get rid of energy subsidies offered by his
predecessor, warning the West African country’s deficit could rise
to untenable levels unless spending fell. Reuters