Foreign exchange shortage has propelled businesses and individuals struggling to access cash from banks to reach for the equity market as a way to maintain the value of their money. The rally is being driven by stocks such as Delta Corporation, Padenga and telecoms firm Econet Wireless which shares have more than doubled in value this year. The ZSE gained 39.56%.
Fitch rating agency stated that its negative outlook on Kenya’s sovereign debt could be changed if a re-run presidential election goes “relatively” smoothly and debt to GDP levels were to decrease. The new election opposing current president against opposition leader Odinga has been scheduled for 17th October. Fitch currently rates Kenya as B+ with a negative outlook. The NSE lost 0.70%.
KPMG fired top executive members of its South African branch after an internal investigation found that work done for the Guptas improperly influenced government contracts. South African chief executive Trevor Hoole, chairman Ahmed Jaffer, chief operating officer Steven Louw and five senior partners all resigned. This is the third firm to suffer the consequences of work done for the Guptas after public relations agency Bell Pottinger and consultancy McKinsey. The JSE lost 0.14%.
Zambia’s Ministry of Finance provided economic forecasts last week. The economy is expected to grow by 5% in 2018, 5.1% in 2019 and 6.1% in 2020, up from 4.3% in 2017. Inflation is expected to remain 6 to 8% from 2017 to 2020. The LuSE 0.02%.
As part of a measure to increase financial stability, Ghana’s central bank raised the minimum capital required for banks GHS400million ($90.2 million). The previous capital requirement for banks and new entrants was 120 mn cedis. The increases took effect from September and that the banks have up to the end of 2018 to meet them. The GSE lost 2.7%.
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