The Markets

JOHANNESBURG (Capital Markets in Africa) – South African stocks are heading for the best weekly rally since Jan. 11, but don’t be fooled by the apparent momentum. The path of least resistance leads down. The benchmark FTSE/JSE Africa All Share Index has added 2.1 percent in the past five days, with its 50-day moving average looking to cross above the 100-day mean. That’s made equities look resilient even as a crisis at the state-owned power utility Eskom fuels…

ACCRA (Capital Markets in Africa) – Tullow Oil Plc will pay a dividend for the first time since 2014 after returning to profit last year. “The board has decided to recommend a final dividend of 4.8 cents a share, representing a total shareholder return of about $67 million,” the oil producer said in its 2018 results statement. The payback follows success in cutting debt and reflects increased confidence after drilling in Guyana was brought forward. “We take…

LAGOS (Capital Markets in Africa) – Lagos stocks extended their winning streak to the longest since July 2017 before this weekend’s election, as investors stepped up their bets on a market-pleasing outcome. The benchmark Nigerian Stock Exchange Main-Board Index climbed 2.1 percent Tuesday, its best performance this year, rising for an eighth consecutive day to the highest in almost four months. Dangote Flour Mills Plc, Jaiz Bank Plc, Livestock Feeds Plc and NPF Microfinance Bank…

LAGOS (Capital Markets in Africa) – The recent rally in Nigerian assets may pick up steam if there’s a change in government after this weekend’s presidential election, according to lenders and money managers including AllianceBernstein LP and Citigroup Inc. The main equity index in Africa’s biggest oil producer has risen for eight straight days. But its 3.3 percent gain in 2019 is still less than half the 8.4 percent jump for MSCI’s gauge of emerging-market stocks and 7.5 percent…

CAIRO (Capital Markets in Africa) – Egypt cut its forecast for the pound’s value against the dollar and projected higher interest costs on local government debt for fiscal 2018-19, even as its expectations for economic growth and debt reduction remained on target. In a mid-year report, the Finance Ministry forecast: The currency will weaken to 18 pounds to the U.S. dollar versus earlier projection of 17.25 pounds Yields on Treasury bills and bonds will rise to 18.6…

LAGOS (Capital Markets in Africa) – The looming U.S.-China trade talks may be set to reveal how complacent traders have been about the dispute just as the rally in emerging markets loses steam. Last week’s sudden retreat came as representatives from the world’s two biggest economies prepared to discuss the standoff, with President Donald Trump saying he wouldn’t meet his Chinese counterpart Xi Jinping before a 90-day truce ends March 1. U.S. Trade Representative Robert Lighthizer and…