African Markets-Factors to watch

Reuters: Wed May 2, 2012 1:45am EDT

The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.

EVENTS:

UGANDA – The central bank sets its interest rate for May after holding it at 21 percent last month. Year-on-year inflation slowed to 20.3 percent in April but a big jump in monthly food prices may prompt policymakers to be cautious.

MALI – Holds a cabinet meeting to discuss next steps in the transition back to democratic rule after the coup in March.

KENYA – The central bank auctions 182-day Treasury bills worth 3 billions shillings.

GLOBAL MARKETS

Asian shares edged higher and the dollar recovered against the yen on Wednesday after strong U.S. factory activity data raised hopes that the world’s biggest economy remained on a recovery track.

WORLD OIL PRICES

Brent crude was steady above $119 a barrel on Wednesday, supported by positive manufacturing data from the United States and China that lifted hopes of higher oil demand at the world’s top two energy consumers.

SOUTH AFRICA CURRENCY, BONDS South Africa’s rand hit a near 4-week high against the dollar but later relinquished the gains to end slightly down in quiet trade after local data pointed to a hefty deficit on the trade account during the fist quarter of the year.

SOUTH AFRICA SHARES

South African stocks rose slightly on Monday in the last trading session of the month, buoyed by financial and resource stocks such as diversified miner African Rainbow Minerals.

NIGERIA MARKETS

The Nigerian naira firmed against the U.S. dollar on the interbank market, supported by speculation of planned dollar sales by two units of multinational oil companies and some banks selling down their position in anticipation of large month-end dollar flows.

NIGERIA FOREX RESERVES

Nigeria’s foreign exchange reserves rose by 2.96 percent on the month to $36.52 billion on April 27, the highest level in more than one year, data from the central bank showed.

NIGERIA SECURITY

Nigerian forces raided the hideout of Islamist militants in Kano on Tuesday, killing thesuspected mastermind of an attack on Christian worshippers, in a gun battle that lasted several hours in the main northern city.
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NIGERIA TELECOMS

Nigerian telecoms infrastructure firm IHS  will conclude at least three separate deals with African operators this year to build and lease back 1,000 towers, its chief executive told Reuters.

KENYA MARKETS

The Kenyan shilling was flat against the dollar on Monday ahead of a key rate setting meeting on Thursday, with few prepared to place bets until they get a clear sense of direction for the central bank.

KENYA INFLATION

Kenya’s year-on-year inflation rate slowed in April to its lowest level since May last year, data showed on Monday, boosting the chances the central bank will trim its key lending rate soon.

KENYA RATES

Kenya’s central bank is likely to hold its key interest rate steady on Thursday because credit is still growing strongly and rising fuel prices still pose an inflation risk, analysts said.

KENYA TEA PRICES

The average price of the top Kenyan tea grade inched down to $3.47 per kg at auction this week from $3.53 per kg at the previous sale, market participants said.

SOUTH SUDAN-SUDAN CONFLICT

South Sudan accused Sudan of launching a ground attack in an oil region of the newly independent state on Tuesday and said it was preparing to strike back, in rising tension that shows no sign of abating. * China and Russia are resisting a Western push for the U.N. Security Council to threaten Sudan and South Sudan with sanctions. * For a column on the conflict:

MALI COUNTER-COUP

Soldiers from Mali’s ruling junta foiled a counter-coup bid by presidential guardsmen on Tuesday, overrunning their base in the capital and fending off their assaults on the airport and the state broadcaster.

GHANA COCOA

Ghana’s cocoa regulator Cocobod is investigating a shortfall of around 70,000 tonnes of beans between official cocoa purchases and its inventory after buyers reported inflated volumes, a Cocobod official told Reuters.

BURUNDI FOOD

Burundi has suspended taxes on imported basic foods such as flour and oil to help citizens squeezed by a jump in living costs that has prompted strikes, its president said.

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