The Markets | - Part 136

Carry Trades With Emerging FX Are Entering Bearish Momentum

LAGOS (Capital Markets in Africa) – Emerging-market carry trades are losing their appeal and they could be in for more losses, if technical indicators are any guide. A Bloomberg gauge of carry trades in eight developing-nation currencies declined 1.7 percent since reaching the most since August 2014 on Jan. 25 amid the latest market turmoil that sent volatility to the highest level since 2015 this week. The carry-trade measure fell below the 21-day moving average on Wednesday. At…

Yields Speak Louder Than Ratings for Emerging-Market Investors

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Emerging-market investors aren’t worrying much about the opinion of ratings companies these days as the hunt for yield outweighs what they consider rear-view assessments. Most of the developing nations that were downgraded in the past six months, including Brazil, Colombia and South Africa, saw their risk premium rise just briefly following the decision before quickly resuming their downward march amid a strong risk-on mood. Part of the explanation is simple. Investors have been…

Iron Ore Imports Boom as China Mills Go Big Before Curbs End

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – China’s just imported a gargantuan volume of iron ore. Shipments topped 100 million metric tons in January, the second-highest volume ever and a record for the month, as mills bought more cargoes amid expectations steel output will rebound when winter curbs are lifted. Purchases swelled to 100.3 million tons, 9.3 percent higher than a year ago, and well above the 84.1 million tons seen in December, according to customs data on Thursday. The…

Egyptian Exchange EGX 30 Price Index Rises 1.7%; COMI EC Leads

Posted on by The Editorial Team

CAIRO (Capital Markets in Africa) – The Egyptian Exchange EGX 30 Price Index rose 1.7 percent to 14,972.94. The move was the biggest since rising 2.2 percent on Nov. 28 and follows the previous session’s decrease of 1.6 percent. The MSCI Emerging Markets Europe, Middle East and Africa Index advanced 1.2 percent. Commercial International Bank Egypt SAE contributed the most to the advance, rising 1.8 percent. Abou Kir Fertilizers & Chemical Industries increased 4.9 percent, the biggest gain. Telecom…

Bitcoin May Evolve Into What Everyone Fears, Mathematicians Say

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Prices of cryptocurrencies such as Bitcoin may never stabilize, and digital tokens risk simply ending up being the equivalent of Ponzi schemes. Using mathematical modelling and experimental economics, two University of Pittsburgh researchers tried to determine Bitcoin’s value, and concluded that it’s “an asset which has no value by traditional measures” and may be in a bubble. Its price is largely driven by the opinion of fringe buyers, often holding erroneous…

Bitcoin Above $8,000 After Regulators Spare Toughest Reprisals

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Bitcoin is marching toward its second day of gains as traders showed relief over comments Tuesday by U.S. securities regulators, who called for greater oversight of cryptocurrencies without proposing industry-killing measures. The largest digital token headed to its first back-to-back increase in almost two weeks, rising 4.4 percent to $8,107 by 10:49 a.m. in New York, after earlier rising above $8,600 for the first time this week, according to prices compiled by Bloomberg….

Naspers Asking Investec to Pull `Damaging’ Analyst Report

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Naspers Ltd. asking Investec Ltd. to withdraw an analyst report that it says contains errors and has damaged Africa’s biggest company by market value and its shareholders. In the note dated Jan. 22 seen by Bloomberg News, Investec analysts David Smith and Thapelo Mokonyane said Naspers should be valued at a 30 percent discount to its assets. That’s due to a gradual increase in the number of outstanding shares…

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