AFMI Weekly Insight February 15th 2019

15 February 2019


Bonds

Burundi sold 2 billion francs ($1.1 million) of bills due Aug 15 on Feb. 13. Investors offered to buy twice the amount of securities that the government sold. The bills were sold at a price of 9.7654, have a yield of 2.5 percent and settled Feb. 14. (Source: bloomberg.com/africa)

Currency & Monetary Policy 

Egypt Central Bank cuts interest rate- Egypt’s central bank made a surprise cut to its overnight interest rates on Thursday 14 Feb 2019, citing a strong drop in inflation and an improvement in other macroeconomic indicators. The bank lowered its deposit rate to 15.75 percent from 16.75 percent and its lending rate to 16.75 percent from 17.75 percent, it said in a statement, its first rate cuts since March 2018. Ten out of 14 economists polled by Reuters said the bank’s Monetary Policy Committee (MPC) was unlikely to change its overnight rates, while only four expected it to cut them. (Source: af.reuters.com

Nigeria’s Inflation falls in January- Nigeria’s inflation stood at 11.37 percent in January, compared with 11.44 percent in December, the National Bureau of Statistics said on Friday. A separate food price index showed inflation at 13.51 percent in January, compared with 13.56 percent in December. (Source: af.reuters.com)

Rand weakens- South Africa’s rand was on course for a loss of more than 3 percent against the dollar this week, as five consecutive days of power cuts reminded investors about the fragility of an economic recovery. (Source: af.reuters.com)

South Africa’s unemployment rate falls in Q4-2018- South Africa’s unemployment rate fell to 27.1 percent in the fourth quarter from 27.5 percent in the third quarter, official data showed on Tuesday. There were 6.1 million people without jobs in the three months to the end of December, compared with 6.2 million people in the prior quarter, Statistics South Africa said its quarterly labour force survey. (Source: af.reuters.com)

Borrowings

Kenya’s public debt increases in H2-2018- Kenya's public debt increased by Sh233.5 billion between July and December last year, hitting a total of Sh5.273 trillion up from Sh5.039 trillion six months earlier. Latest debt data published by Central Bank of Kenya (CBK) shows external loans went up by Sh163.5 billion in the period, significantly outpacing the Sh70 billion increase in domestic debt. (Source: www.allafrica.com)

Uganda’s Debt Profile- Uganda’s total public debt stock (domestic and external) amounts to $10.7b (Shs41.326 trillion), translating to a ratio of 41.5 per cent. (Source: www.allafrica.com)

Currencies

Source: Bloomberg®

Currencies chart

AfDB/AFMI℠ Bloomberg® African Bond Index (ABABI) 25% Capped

The ABABI 25% Capped is a rule - based weighted composite index of local Sovereign Indices (South Africa, Egypt, Nigeria, Kenya, Namibia, Botswana, Ghana, and Zambia).

County percentage composition to the index is capped at 25 %.

To be included in the index, a security must have at least 1 year remaining to maturity.

Source: Bloomberg®

BADBC chart

African Domestic Bond Fund

Source:  Bloomberg®

ADBF chart
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