Thursday, 1 September 2011

Nigeria to introduce short selling

THE Nigerian Stock Exchange has arranged to permit securities lending and short selling activities.

Securities lending allows a broker-dealer in possession of a particular security to earn enhanced returns on the security through finance charges.

Mr. Oscar Onyema, NSE chief executive officer, said the Exchange is collaborating with industry participants to ensure a smooth take off of the proposed initiatives.

Wednesday, 31 August 2011

The Cardin-Ludgar provision to help eliminate corruption in frontier markets

Frontier markets recieved a big boost with passage of the Wall Street Reform Conference Report. In this the Senate approved a measure, authored by U.S. Senator Benjamin L. Cardin, Chairman of the Commission on Security and Cooperation in Europe, and Senator Richard Lugar to increase transparency in the oil, gas and mining industries.

The Cardin-Lugar Energy Security Through Transparency provision will add stability to markets through greater information and predictability and help protect investors from undue risks associated with corrupt or unstable governments in oil-rich or mineral-wealthy countries.

The provision requires extractive companies listed on U.S. stock exchanges to disclose, in their SEC filings, payments made to governments for oil, gas and mining.

Tuesday, 23 August 2011

Pakistan situations worsens

Violence and disagrements on taxation between the provinces and central government are stressing Pakistan. The central bank governor has resigned, becasue the government has asked the central bank to print money to pay its bills. This is not good. His replacement is a professional banker, but he is an advocate of lower interest rates (focusing on growth not rising inflation). The markets dont like that either. Elections have to be help before Feb/March 2013. The politicians want to buy their victory in the way Musharaf did.

There are shortages in many things. Skills, finance, governance, electricity, gas and water. Against a backdrop of a poor economy, this is a dangerous cocktail.

The 18th amendment to the constitution has not been implemented well (provincial decentralisation) and this is leading to more friction. US/Pakistan relations have also deteriorated a lot, threatening USD 1.5bn of aid a year, some of it already being held back.

The real risk of a military coup is now very high.

Friday, 15 July 2011

Stock splits in China.....

China's largest hypermarket operator, which priced its Hong Kong IPO at the top of its range and secured cornerstone investment from GIC, has delayed the offering due to an accounting error in the prospectus. The retailer is thought to have overstated its earnings per share for three years in a row, after forgetting to include a stock split in its calculations!

Saturday, 11 June 2011

Mauritius International Investment Forum (MIIF) on 15 and 16 June 2011

The Mauritius Board of Investment plans to hold the Mauritius International Investment Forum on 15 and 16 June 2011. The Forum will showcase Mauritius as an attractive investment destination with focus on promoting the traditional sectors, the emerging value-added activities, as well as future industries. It will also position Mauritius as the natural gateway to invest in the region. Lord Meghnad Desai of the UK House of Lords, Dr Paul Romer, renowned Economist from the US, and Daniel Broby, one of the top frontier market investors will be the Guest Speakers at the Forum.


Wednesday, 1 June 2011

Are frontier bonds going to decouple from EM bonds?

Silk Road Fixed Income Fund versus EM bond universe.

Monday, 23 May 2011

North Sudan seizes disputed Abyei

Sudan's northern army seized control of the disputed, oil-producing Abyei region, forcing thousands to flee and bringing the country's north and south to the brink of full conflict. Khartoum sent tanks into Abyei town, the area's main settlement, on Saturday, the United Nations said after weeks of growing tension and accusations of skirmishes by both sides.

Control over Abyei remains the biggest point of contention in the countdown to the secession of south Sudan, expected in July. Southerners overwhelmingly voted to declare independence from the north in a January referendum , promised in a 2005 peace deal that ended decades of north-south civil war.

Wednesday, 18 May 2011


2nd June 2011 12:00 - 15:00

Bloomberg are holding a lunchtime event focusing on African Frontier Markets on 2nd June 2011. Hear from experts in the market on opportunities and growth.

Tuesday, 17 May 2011

MSCI Frontier Markets Indices

There will be three additions to and 24 deletions from the MSCI Frontier Markets Index. The three additions to the MSCI Frontier Markets Index are Banca Transilvania (RO), Qatar Fuel Co (QA) and Distilleries Co Sri Lanka (LK).

The MSCI Frontier Markets Small Cap Index will have 36 additions and 33 deletions.
As announced as part of the February 2011 Quarterly Index Review, due to persistent deterioration of liquidity, MSCI will exclude Trinidad & Tobago from the MSCI Frontier Markets Indices. MSCI Trinidad & Tobago Index will be maintained as a stand-alone country index.

Commodity outlook

Saturday, 14 May 2011

Harare CFO Forum (27th May 2011)

Event Program
08.00 Coffee & Registration

08.45 Chairman’s Welcoming Address

09.00 Macro Outlook: Tough decisions for your company’s economic future

Mr Daniel Broby, Chief Investment Officer, Silk Invest (UK)

Benefits for delegates will include:

•Current thinking and wisdom on issues that are essential for the effectiveness of the finance executives the businesses they drive.
•Learning strategies to help them build their businesses despite the challenging financial environment
•Gain a unique insight into the thinking of fellow financial management professionals during the interactive panel sessions
•Network and exchange ideas with their peers, discovering new angles to address their most pressing issues.
10:15 Challenges and opportunities for Today’s CFOs

Mr Nigel Chanakira, President and Founder of Kingdom Financial Holdings

11:00 Midmorning teas and Sandwiches

11.45 The Zimbabwe Economy- Past, Present and Future

Mr H W Mungoshi,Chief Economist, ZESA

13.00 Networking Lunch

14.15 The FD’s role in attracting new business and revenue streams

Discussion Group

•An interactive discussion group looking at the following areas:
•How can the FD directly through his own personal efforts attract new business?
•How can the FD help others to attract new business? How can we best add value in each of the Marketing P’s (Product, Price, Place, Promotion, People, Process, Physical evidence)?
•What are we good at that helps attracts new business? And what do we FD’s have a tendency to do – and need to watch out for – which goes against this aim?
•How can we best use target setting and design of the company compensation systems to attract new business? Is it true, what gets measured by us gets done?
•Would it help if we could be more entrepreneurial…should we be? How do we best get any concerns we have in an opportunity without being seen as a blocking mechanism on all things new?
•Does our desire for planning things and our eye for detail act for or against attracting new business?

15.30 Afternoon Teas and Coffees with Biscuits and Scones

16:00 Speaker

17:00 Chairman’s Vote of Thanks

17.15 Speed meets

17:30 Networking drinks reception

Entertainment by Victor Kunonga (Zimbabwe leading Jazz Artist)

The Forum seeks to provide the Chief Finance Officers and Finance Managers in the region an independent strategic debate. The forum speakers and program of plenary sessions will inspire finance executives to focus on opportunities that exist. A range of carefully selected topics will form the thrust of the discussions during the interactive sessions.

The CFO Forum is an event specifically designed to address the increasing needs and demands of the senior finance executive.

With years of economic slowdown, Zimbabwean businesses are subjected to painful boom-and-bust cycles. A prolonged economic surge has left the country with a legacy of stubbornly low productivity growth and a reduced appetite for professional excellence.

Zimbabwean financial executives are facing the inevitable challenges of sharper competition, low productivity and financing constrains? What can financial managers do to avoid the complacency trap and help steer their businesses in the right direction? Join many other CFOs and national and international speakers as we address the growth agenda, identify what successful businesses have done to reposition for sustainable growth, and fast-forward into the future to look at the key trends that will shape corporate Zimbabwe.

Tuesday, 26 April 2011

IMF on global imbalances..

The IMF has issued the following observation “The pre-crisis pattern of global imbalances is re-emerging. Growth in economies with large external deficits, like the US, is still being driven by domestic demand. And growth in economies with large external surpluses, like China and Germany, is still being powered by exports. As tensions between countries increase, we could see rising protectionism – of trade and of finance. And as tensions within countries increase, we could see rising social and political instability within nations – even war."

Friday, 14 January 2011

Frontier markets are the place to be in 2011

Whilst most asset allocators are making cautious predictions for 2011, some are calling for increased allocation to those emerging markets left behind by the BRIC euphoria. In particular, new emerging markets, or frontier markets, are fast becoming an investment theme in their own right.

Frontier markets represent some 4% of global GDP, around $2.5 trillion when combined. These off benchmark emerging markets are typically nascent economies that are just starting on the process of industrialisation. According to Daniel Broby, Chief Investment Officer of Silk Invest, this means that they will enjoy above average growth for the next 5 – 15 years if they get their act together.

A number of frontier markets have either new or established stock exchanges and the investment universe is far larger than most imagine. Indeed, only last week saw the launch of a new stock exchange in Laos. Countries like Iraq, Lebanon and Zimbabwe have sustained their exchanges throughout a decade of troubles. Thanks to greater use of technology, global investors can get access to such markets and benefit from the mispriced risk.

Although the immediate opportunity is in the public markets; private equity, fixed income, and property all offer attractive returns. A number of new funds have been launched to capitalise on this theme including the Silk Road Frontier Fund, the BlackRock Frontiers investment trust and Schroder ISF Frontier Markets Equity.
The frontier markets are particularly attractive to long horizon institutional investors. That said, these are markets where stock picking and local presence is a pre-requisite. Investors should look to have an overweight exposure and not market time. Investment risks include illiquidity and political surprise, but the returns of a expected returns of a diversified portfolio far out way these in the long run.

Thursday, 13 January 2011

Frontier markets webcast

IPE Webcast Series Presents: A Unique Opportunity in Frontier Markets (Silk Invest Limited)
Tuesday, January 25, 2011
14:00 UK Time, 9 am EST

Presentation by:
Zin Bekkali
Daniel Broby
Baldwin Berges
Brendan Maton

Register for this event.Frontier markets have shown remarkable resilience during the recent global economic downturn and have in line with their emerging markets peers sustained their long term convergence trend. African, Arab and Asian frontier countries are increasingly able to strengthen their competitive advantages and carve out a place in the global economy.

The case for frontier markets is however not well understood and many of these markets are selling today at significant valuations discounts in comparison with the rest of the world. This is evident across asset classes and can be showcased when looking at dividend yields which are typically twice the global average or interest rate spreads which are still pricing in a very high risk premium.

This paradox of above average growth and valuation discounts, represents a unique window of opportunity for investors to start looking at these markets. The capital markets in frontier markets are relatively young but are relevant for investors. Their combined market capitalization is bigger than many of the favourite emerging markets and the fixed income universe has reached critical size.

Silk Invest is built around the conviction that the world is turning upside down and that investors should add frontier markets to their portfolios. Silk Invest will host this webcast to share its views on the markets and showcase its approach to get access to the best investment opportunities.

The webcast will allow you to take a closer look at frontier markets and obtain a better understanding of the realities and the fundamental drivers of these fast-growing economies that are increasingly opening up to global investors.

During the webcast, Silk Invest will provide insights and perspectives on:

• The macro case for investing in frontier markets with a special focus on Africa, the Middle East and Central Asia
• The development of capital markets and accessibility of the frontier countries
• Investment opportunities in equities, fixed income and private equity
• The appropriate investment approach for frontier markets and how investors can capture the benefits of this high economic growth

Monday, 10 January 2011

Laos stock exchange goes live

Two stocks are listing on the new laos stock exhange that opened this year. Banque Pour Le Commerce Extereiur Lao, or BCEL, and, EDL-Generation Co both offer interesting exposure. More state-controlled businesses could be listed within a few years, and the market could end up with 10 or 15 companies listed.

When Laos is analysed by frontier funds like Silk Invest's "Silk Road Frontiers Fund", it is largely because of its potential as a major exporter of hydropower in an energy-hungry region. Thailand, Vietnam and China are growing power demand rapidly, and Laos, with its network of fast-flowing rivers, is viewed as a "hydropower play".

Tuesday, 4 January 2011

Growing microfinance scandal

The Indian micorofinance scandal is starting to get more international press. In the last six monthe more than 70 people have committed suicide to escape payments or end the agonies their debt has triggered, according to the Society for Elimination of Rural Poverty, an Indian government agency that compiled the data on the microfinance-related deaths from police and press reports.