African Markets – Factors to watch on May 18

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

 GLOBAL MARKETS 

 Asian shares were led higher by S&P 500 futures on Monday and oil prices hit a five-week peak as countries’ efforts to re-open their economies stirred hopes the world was nearer to emerging from recession.            

 WORLD OIL PRICES 

 Oil prices climbed by more than $1 a barrel on Monday to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the coronavirus pandemic spreading.                

 EMERGING MARKETS 

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 AFRICA STOCKS 

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 SOUTH AFRICA MARKETS 

 South Africa’s rand fell on Friday and ended lower on the week as fears about a resurgence of coronavirus infections hurt sentiment toward the emerging markets.  

 NIGERIA PETROLEUM 

 OPEC member Nigeria has reined in oil production to bring Africa’s top crude exporter into line with an agreement among producers to curb output, Minister of State for Petroleum Timipre Sylva said.            

 NIGERIA COCOA 

 Nigeria’s cocoa mid-crop output is expected to be weak as measures to curb the spread of the coronavirus hindered farmers and exporters, creating a backlog of unshipped beans, the president of the cocoa association said.             

 KENYA MARKETS 

 The Kenyan shilling was under slight pressure on Friday due to an uptick in demand from businesses buying hard currency to meet their obligations as economic activity slowly resumes amid the novel coronavirus pandemic, traders said.             

 KENYA DEBT 

 Kenya will not seek a suspension of debt payments under a G20 initiative aimed at helping poor countries weather the COVID-19 pandemic, its finance minister said on Friday, saying the terms of the deal were too restrictive.             

 KENYA EAST AFRICAN BREWERIES RESULTS 

 Kenya’s East African Breweries Limited (EABL) has said its profit after tax for the year ending June is likely to decline by 25% compared to the previous period, hurt by the coronavirus pandemic.   

 KENYA BORDER CLOSURES 

 Kenya’s President Uhuru Kenyatta on Saturday banned movement across the country’s borders with Tanzania and Somalia to help curb the spread of the coronavirus.            

 TANZANIA ECONOMY 

 Tanzania’s economy is expected to expand by 4 percent in 2020, less than an earlier projection of 6.9% due to the impact of the coronavirus, the finance minister said.             

 UGANDA ECONOMY 

 Uganda’s foreign exchange reserves will fall to a worryingly low level in the fiscal year starting in July unless it receives external funding then, the International Monetary Fund said on Friday.             

 BURUNDI POLITICS 

 Burundi holds its first competitive presidential election this week since a civil war erupted in 1993, but simmering political violence and fears that campaign rallies could accelerate the spread of the coronavirus have already marred campaigning.       

 ETHIOPIAN AIRLINE 

 Ethiopian Airlines expects a settlement with planemaker Boeing by end of June over compensation related to the 737 MAX grounding in March 2019 following two fatal crashes, CEO Tewolde Gebremariam told Reuters on Friday.       

GHANA CENTRAL BANK RATE 

 Ghana’s central bank left its key interest rate unchanged at 14.5% on Friday and said it had concluded a $1 billion repo facility with the U.S. Federal Reserve to improve the country’s foreign exchange liquidity.    

NAIROBI, May 18 (Reuters) 

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