Nairobi — African markets are likely to take direction from global monetary-policy developments, movements in oil prices and a number of important corporate and commodity developments across the continent on Thursday.

Global Markets

Asian shares edged higher on Thursday as investors assessed the latest move by the U.S. Federal Reserve and its implications for global borrowing costs, bonds and emerging-market assets.

Investors remained focused on the Fed’s interest-rate decision and signals on the future path of monetary policy, with developments in U.S. yields and the dollar likely to influence African currencies and capital flows.

World Oil Prices

Oil prices fell in early Asian trade on Thursday, extending losses from the previous session.

Reports that Saudi Arabia was offering additional crude cargoes through Oman eased some concerns about potential supply disruptions in the Middle East.

Lower oil prices could provide some relief for African oil-importing economies by reducing pressure on fuel costs, inflation and foreign-exchange demand. For oil exporters, however, weaker crude prices could weigh on government revenues and export earnings.

Africa Stocks

African equities are expected to track global risk sentiment while investors monitor interest-rate expectations, commodity prices and currency movements.

Markets remain sensitive to changes in U.S. monetary policy, particularly because shifts in global yields can influence foreign investment flows into African stocks and bonds.

South Africa Markets

The South African rand weakened on Wednesday despite stronger-than-expected retail sales data and stable inflation expectations.

Investors remained cautious ahead of the U.S. Federal Reserve’s interest-rate decision, with movements in the dollar and global bond yields likely to remain important drivers for the rand.

South African markets will also continue to assess domestic economic data and expectations surrounding the South African Reserve Bank’s monetary-policy outlook.

Ghana Gas Pipeline

State-owned Ghana Gas plans to make a final investment decision by early next year on a long-discussed $500 million gas pipeline project, Chief Executive Officer Judith Adjobah Blay said on Wednesday.

The proposed pipeline would transport gas from the company’s processing plant in western Ghana to industrial users in the country’s southeast.

The project is aimed at strengthening Ghana’s domestic gas distribution infrastructure and supporting industrial activity by improving access to locally processed gas.

Ivory Coast Cocoa

Ivory Coast’s cocoa grinding increased 21.3% year-on-year in August to 47,646 metric tons, according to data from exporters’ association GEPEX.

Higher domestic processing activity is significant for the world’s leading cocoa-producing country as it seeks to capture more value from its cocoa industry through local processing rather than relying primarily on exports of raw beans.

Kenya — Safaricom Stake Sale

Kenya’s government will appeal a court ruling ordering the cancellation of a transaction through which it sold an additional 15% stake in telecommunications company Safaricom to South Africa’s Vodacom, Finance Minister John Mbadi said on Wednesday.

The dispute could have implications for ownership of one of Kenya’s largest listed companies and for the government’s broader approach to state asset transactions.

Investors will be watching the legal process and its potential implications for Safaricom’s shareholder structure.

Key Watchpoints

  • U.S. Federal Reserve: Interest-rate decision and policy guidance.
  • Oil: Middle East supply developments and crude-price movements.
  • South Africa: Rand performance and reaction to global rate expectations.
  • Ghana: Progress toward the $500 million gas pipeline investment decision.
  • Ivory Coast: Cocoa processing and export-sector developments.
  • Kenya: Government appeal over the Safaricom stake transaction.

Source: Reuters