No Result
View All Result
Saturday, April 1, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG cautions against use of Ghana Cedi for bouquets and hampers

    CUTS International pushes for passage of Competition bill

    DBG partners UGBS to deepen development finance

    GH¢5.5bn approved by Parliament not only for Blackshield customers – SEC

    BoG assures of enhanced educational campaigns to ensure proper handling of local currency

    Youth in Accountable Governance calls for passage of outstanding revenue bills

    GRA reiterates calls for businesses to embrace  E-VAT

    IES predicts drop in fuel prices from April 1

    Journalists trained on the Enrolment of cocoa farmers in pension scheme

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    CUTS International pushes for passage of Competition bill

    DBG partners UGBS to deepen development finance

    Bank of Ghana increases Monetary Policy rate to 29.5%

    Industry experts convene to discuss diversification strategies for pension funds

    It’s time to give women top posts in multilateral institutions – GCBL Chairman 

    Global Chamber of business leaders enters into partnership with IEFS

    Gold for Oil policy will save Ghana $4.8bn annually – Veep

    Energy Minister scheduled to speak on Ghana’s near-term opportunities at NAEPEC 2023

    Standard Chartered appoints Ebenezer Twum Asante as Chairman of Board of Directors

  • TECHNOLOGY

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    BoG cautions against use of Ghana Cedi for bouquets and hampers

    CUTS International pushes for passage of Competition bill

    DBG partners UGBS to deepen development finance

    GH¢5.5bn approved by Parliament not only for Blackshield customers – SEC

    BoG assures of enhanced educational campaigns to ensure proper handling of local currency

    Youth in Accountable Governance calls for passage of outstanding revenue bills

    GRA reiterates calls for businesses to embrace  E-VAT

    IES predicts drop in fuel prices from April 1

    Journalists trained on the Enrolment of cocoa farmers in pension scheme

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    CUTS International pushes for passage of Competition bill

    DBG partners UGBS to deepen development finance

    Bank of Ghana increases Monetary Policy rate to 29.5%

    Industry experts convene to discuss diversification strategies for pension funds

    It’s time to give women top posts in multilateral institutions – GCBL Chairman 

    Global Chamber of business leaders enters into partnership with IEFS

    Gold for Oil policy will save Ghana $4.8bn annually – Veep

    Energy Minister scheduled to speak on Ghana’s near-term opportunities at NAEPEC 2023

    Standard Chartered appoints Ebenezer Twum Asante as Chairman of Board of Directors

  • TECHNOLOGY

    Cyber Security Authority commences licensing and accreditation regime

    Twitter is reportedly planning to charge businesses $1,000 per month to keep gold verified checks

    Ghana withdraws $672m back-tax demand from MTN Group

    MTN to fight $773m tax bill from government

    Telcos to implement 1% E-Levy charge from today

    Huawei Equips 500 Traders in FinTech

    Africans urged to bolster adoption of Bitcoins

    What does 2023 hold? Predictions in payments for the year ahead for Africa

    Meta considered building a Twitter competitor to capitalize on Elon Musk’s ‘crisis’ at company

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

    Silicon Valley Bank crisis: What led to stock crash, what lies ahead?

    Medical devices market projected to expand by $ 7.1 billion by close of year

    African Union adopts Africa Prosperity Dialogues AfCFTA action plan

    Third World Network Africa urges Africans to be strategic about AfCFTA

    5 important things to know about the African Continental Free Trade Area agreement

    $130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

    Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

    Nigeria’s national debt hits an all time as the country struggles with repayment

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Investors looking beyond Zuma load up on South African debt

bycitibusinessnews
April 15, 2016
in Africa, Southern Africa
Share on FacebookShare on TwitterShare on Whatsapp

Investors are disregarding political risks in South Africa as they line up to take advantage of the region’s best emerging-market bond rally.

Foreigners have bought a net 26.9 billion rand ($1.86 billion) of the nation’s bonds in 2016, the best start to a year since 2010 and a turnaround from the final quarter of 2015, when they dumped 1.5 billion rand of debt. Government securities denominated in local currency have returned 2.4 percent so far in April, the most among 16 developing nations in Europe, the Middle East and Africa, according to data compiled by Bloomberg. The year-to-date return of 14.67 percent is second only to Russia’s.

The flows are another sign investors are getting more confident about the nation’s outlook even as President Jacob Zuma, who is mired in a scandal over public spending on his private home, faces calls to step down and the prospect of a credit rating downgrade to junk increases. The government’s first dollar-bond sale in two years last week attracted bids for more than twice the $1.25 billion on offer, while automakers and tire manufacturers are among companies announcing new investments.

ADVERTISEMENT

“People have looked at South Africa and said what else is there that we haven’t discounted that could be bad news?” said Nigel Rendell, an analyst at Medley Global Advisors LLC in London who said it’s “probably a reasonable time to buy” the country’s assets. “A lot of people were underweight. People have probably said there’s not much else that can go wrong.”

Zuma shock

Benchmark rand bonds and the currency have recovered to levels before Zuma shocked markets by dismissing Finance Minister Nhlanhla Nene on Dec. 9. After losing 25 percent of its value against the dollar last year, the rand has strengthened 6 percent in 2016, helped by a record rally in emerging market currencies in March as commodity prices rebounded and investors pushed out expectations for higher U.S. interest rates.

Yields on the new Eurobond bond due April 2026 have dropped 11 basis points since it started trading on April 8. South Africa’s creditworthiness has improved, with the cost of protecting five-year debt against default falling to the lowest since Dec. 9.

Investors are less concerned that there may be specific risks attached to South Africa and more focused on buying into an improved outlook for commodities, Peter Rosenstreich, head of market strategy at Swissquote Bank SA, said from Gland in Switzerland. Commodities account for about half of South Africa’s exports.

“Short-term speculative money is less concerned with who is facing impeachment or who the next finance minster is, but rather wider sentiment on risk and commodity prices,” said Rosenstreich, who recommends buying the rand as a commodity-linked currency and because he expects its recovery from oversold levels to gain pace. The Bloomberg Commodity Index has climbed 11 percent from its record low on Jan. 20.

South Africa’s currency traded stronger than 14.597 per dollar this week, its level before minister Nhlanhla Nene’s abrupt December firing propelled it to record lows, while yields on benchmark government bonds dipped below 9 percent for the first time this year. The rand declined 0.6 percent to 14.6349 to the dollar by 3:55 p.m. in Johannesburg on Friday, paring its advance this week to 2.3 percent.

“The currency has gone down so far, it’s clearly been oversold and it’s offering a decent return — and yields are pretty attractive,” said Medley Global’s Rendell. “That’s enticed people back.”

–

Credit: Money Web

Related Posts

Africa

Ghana and South Africa urged to leverage on AfCFTA to boost bi – lateral relations

byEmmanuel Oppong

The South African High Commissioner to Ghana, Her Excellency Grace Jeanet Mason is urging businesses in Ghana and South Africa...

Read more

Medical devices market projected to expand by $ 7.1 billion by close of year

African Union adopts Africa Prosperity Dialogues AfCFTA action plan

Third World Network Africa urges Africans to be strategic about AfCFTA

$130bn and $170bn needed annually to bridge Africa’s infrastructural gap – Bawumia

Feed Africa Summit: African Development Bank to commit $10bn to make continent breadbasket of the world

Nigeria’s national debt hits an all time as the country struggles with repayment

Next Post

SA plan seeks to keep black mine ownership at 26%

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.