Tag Archives: African stocks

Trump’s Policies Can’t Stop Africa’s Fastest-Growing Economies

trump-speaking

 

 

 

 

Although we don’t know the full extent of President-Elect of the United States Donald J. Trump’s economic policies, but there are existing “forces” out there that preclude him and his policies from stopping Africa’s growth.

“…there is cause for hope for investors with international assets, especially those invested in emerging markets. Developing economies, on the whole, are in a better position to weather uncertainty than even a few years ago. Economic and monetary policies are very orthodox, and this has been paying off. Inflation is largely under control or falling. Currency weakness may slow but should not prevent central banks from cutting interest rates to support growth. At the corporate level, there are signs that the earnings cycle is turning for the better.”

It seems to be that if the U.S. decides to isolate itself from the rest of the world and its economies (which probably won’t happen), the emerging economies of Africa and other countries will keep on growing due to their own “intrinsic”, unique and endemic forces.

“Despite everything that is going on in the U.S., emerging markets remain regions of unprecedented wealth creation where the scope of economic activity has yet to be fully reflected in stock market capitalization. Growing middle classes in many emerging economies are driving demand for everything from milk powder to cars. These regions will likely grow faster than the developed world for years to come. Unlike the financial markets or even changes in political climate, this is structural, not cyclical. Trump’s policies may close the U.S. off to international trade with some emerging countries, but such policies may do little to prevent the persistent growth of these emerging economies.”

 

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

 

“Trump’s policies can’t stop the fastest growing economies”: http://thinkingaloud.aberdeen-asset.us/en/thinkingaloudus/the-bigger-picture/trumps-policies-cant-stop-the-fastest-growing#utm_medium=social&utm_source=twitter&utm_campaign=thinking%20aloud content marketing_united states_english&utm_content=soc_socialpost

Trump and Africa, and What It Could Mean for Investors

trumpMany are saying that the President-Elect of the United States, Donald J. Trump, may not care about Africa, but some are saying that may be a good thing.

“Despite all this, it’s worth remembering uncertainty isn’t all just about downside. Less trade with the US could force African countries to put more effort into developing stronger trade links with each other. Intra-Africa trade is still a small share of trade for many African countries. And young Africans dissuaded from moving to the US comes with one potential advantage: decades of brain drain can be stalled and Africa’s brightest can focus on problems at home.”

So there may be certain companies, particularly in South Africa, that could take advantage of intra-Africa trade.  Meanwhile, however, there is a lot of downward pressure on the rand, making many South African companies less attractive, at least in the short term.  There are going to be more opportunities, however, with U.S. and European companies that are strong plays on Africa.

Furthermore:

“The unpredictability of a Trump presidency will create new types of opportunities for Africa and Africans. We may not know what they are yet, but we won’t know if we’re not looking.”

 

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

 

“It might not be the end of the world if Africa drops off Donald Trump’s map”: http://qz.com/836048/donald-trump-doesnt-care-much-about-africa-that-may-be-a-good-thing/

Reasons to Keep Buying Emerging Market Stocks for the Long Term

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Some U.S. Trust analysts are bullish on emerging markets, which includes South Africa.  One of the 5 reasons they give is the growth in consumer spending.

“…we still see considerable scope for growth in emerging world consumer spending. Emerging economies account for 85% of the global population, but just under 40% of global household spending. And key consumer segments remain significantly underpenetrated. Mobile broadband subscriptions, for example, stand at just 35% in the emerging world, compared to 87% in developed markets. China surpassed the U.S. to become the world’s largest car market in 2009, but its auto penetration rate is still much lower. And as calorie intake increases, obesity rates rise and sedentary work becomes more widespread, healthcare spending is another areas where we see considerable room for gains in EM consumer outlays.”

Another reason is the change in the EM benchmark.

… Since the financial crisis, the EM benchmark has undergone a major shift away from industrial and commodity-related sectors toward more consumption-linked sectors… As a result, EM equities are now far more closely geared toward the growth areas of the future.”

Other reasons, such as attractive valuations, U.S. and emerging market business cycles having further to run and Fed rate hikes not affecting emerging markets round out the 5.

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

 

“5 Reasons to Keep Buying Emerging Market Equities”: http://blogs.barrons.com/emergingmarketsdaily/2016/10/26/5-reasons-to-keep-buying-emerging-market-equities/

 

 

Goldman Sachs on Africa’s Risks vs. Rewards

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Colin Coleman, Goldman Sachs’ managing director for sub-Saharan Africa, thinks that despite some tough times and risks ahead, long-term prospects are optimistic:

“Despite the challenges that emerging markets have faced recently, Coleman thinks that global sentiment is improving, with Brazil forecast to come out of the recession next year and China and India emerging as ‘bright spots’.

So how does Africa compare in this global context? For investors with a long-term approach, the continent’s large, rapidly growing, under-serviced consumer base is still an attractive option. However, slow growth combined with high risk remains a deterrent.”

He is especially optimistic about East Africa (particularly Kenya and Rwanda”) and South Africa:

“‘One area of optimism on the continent is east Africa. The region has managed to escape some of the knock-on effects of lower commodity prices seen in west Africa, with countries such as Kenya and Rwanda focusing on improving their business environments.

In east Africa we are seeing quite a lot of growth… and I hear very good things about the east African experience from many companies,’ said Coleman.”

“…(South Africa’s) strong institutions are something to feel optimistic about, noted Coleman.
He highlighted that relatively “muted response” on the rand exchange rate after last week’s
events as an example of this.
So actually this tells you quite a bit about the progress that we are making in terms of this
democracy sustaining. I would say this year has been a very evidential demonstration of the
strength of all of our institutions, the constitutional chapter nine, the public prosecutor, the
ability of the IEC to run a good election… the absolute strength of the independence of the
reserve bank… and the strength of the business community and liquidity of markets which
have continued in the face of these things.”
 

African Investment Report will continue to search out opportunities for investing in Africa’s growth. Be sure to subscribe on this page and get our FREE report and updates!

“Goldman Sachs on whether Africa’s risks are worth the rewards”: http://www.howwemadeitinafrica.com/goldman-sachs-whether-africas-risks-worth-rewards/56354/

Why South Africa Could Be a Country for You to Buy Into For Your Portfolio

brics-logo   HSBC’s emerging market researchers and strategists recommend South Africa as one of the countries to buy into.

“Among the BRICS, the only country they rate overweight is Russia. They also have an overweight on Turkey, South Africa, the Philippines, Peru, Indonesia and Hungary.”

(Actually, South Africa is one of the BRICS – that’s what the “S” stands for!)

But they are overweight on South Africa, meaning that they think that buying stocks of companies in, or foreign stocks (U.S. and European, etc.) that are plays on, South Africa would be a better buy, relative to many other countries that are neutral or underweight.

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report and updates!

 

“8 Reasons to Buy Emerging Markets”: http://blogs.barrons.com/emergingmarketsdaily/2016/10/12/8-reasons-to-buy-emerging-markets/

 

Old Mutual On the Rise and Reorganizing

old_mutual_2   Old Mutual (OML|LSE) has been around for a long, long time, but it is adapting to the times and it is a growth stock.

” The stock is up 111% over the past five years and has performed pretty well in recent months as well.”

They are going through a major “reorganization”, recognizing the growth of Africa and the emerging markets:

“This is particularly impressive given that it’s going through a major overhaul, which will see the business try to liberate value by splitting itself into four parts: Old Mutual Wealth, South African lender Nedbank, the South African Old Mutual Emerging Markets business and its US institutional asset management arm Old Mutual Asset Management. It has now exited all its continental European operations, ahead of a planned London flotation later this year. Reports suggest it may retreat from listing its UK wealth management arm, due to the mounting costs of upgrading its investment platform, and could opt for a sale instead.”

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report and updates!

“These 2 solid income stocks merit a place in your portfolio”: http://money.aol.co.uk/2016/10/05/these-2-solid-income-stocks-merit-a-place-in-your-portfolio/

Sub-Saharan African Growth Slumping? So Says World Bank

lion-1551759_960_720   The World Bank has cut their prediction for sub-Saharan Africa for 2016 to 1.6%.

“The disappointing rate of economic expansion is well below the global average of 2.3%, the World Bank said in its twice-annual “Africa’s Pulse” report.

Just in April, the World Bank publication had seen growth in sub-Saharan Africa reaching 3.2% this year, but the slide in the region’s two biggest economies, Nigeria and South Africa, as well as other oil and commodity exporters, has been steeper than anticipated.”

They don’t sound very confident about the future, either:

“The report saw the region growing by 2.9% next year—still below the 3% expansion rate of 2015—but warned that “the balance of risks… remains heavily tilted to the downside.”

This means that even that 2.9% growth projection for 2017 could be optimistic as low oil and commodity prices could persist.”

Okay, so we really have to look for the “bargains”!

And wasn’t it Warren Buffett who said, “Be fearful when others are greedy and greedy when others are fearful.”? Just sayin’…

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report!

 

“Sub-Saharan African Growth Slumps Says World Bank”: http://www.wsj.com/articles/sub-saharan-african-growth-slumps-says-world-bank-1475148609

 

African Agriculture On the Rise With Zambeef, Among Others

woman-in-agriculture-in-africa   Zambeef (ZAM|LSE) is a company based in Zambia but listed on the London Stock Exchange, and poised to be a key player in the growth of agriculture in Africa, according to companies like VSA Capital:

“‘The potential for Africa to feed itself and in the longer-term help feed the world through the development of its agriculture sector is well known,’said Ed Hugo, at VSA.”

Some believe the stock has the potential for promising growth:

“‘We believe the stock should increase further from these levels,’ VSA said.”

In fact, some are bullish on London-listed African agriculture companies:

“VSA was bullish on prospects for London-listed African agriculture equities in general, at least compared to those listed locally.”

African Investment Report will continue to search out these types of companies. Be sure to subscribe on this page and get our FREE report!

“African agriculture stocks a better buy in London than Lusaka”: http://www.agrimoney.com/news/african-agriculture-stocks-a-better-buy-in-london-than-lusaka–9896.html

 

Standard Chartered Bank in New Drive to Expand in Africa

Gambia_Standard_Chartered_Bank_0001   Standard Chartered Bank (STAN|LSE; SCBFF|OTC MKT), which is based in the U.K. (as opposed to Standard Bank, which is headquartered in South Africa), has a new drive to expand in Africa.

“Contributing about 10 per cent of the Standard Chartered Group profitability, the African business supports over 1 million retail customers in Africa and over 25,000 commercial, corporate and institutional clients. The campaign has been launched barely four months since the Standard Chartered Group Chairman Sir John Peace visited Kenya during which he reiterated the Bank’s commitment to continue trading in Africa. Standard Chartered operates across in 38 African economies, 16 on a full-presence and 22 on a transactional basis.”

Hmm…This may be worth looking into…

Find out where we’re going with these Africa investment ideas and concepts by signing up for our free newsletter! Sign up in the box to the right, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”. DID WE SAY IT’S FREE? NO OBLIGATION! So what are you waiting for?  Do it right now!

“StanChart in new drive to grow market share in Africa”: http://www.standardmedia.co.ke/business/article/2000214048/stanchart-in-new-drive-to-grow-market-share-in-africa

 

The Emerging Markets’ Rise Can Keep Going

johannesburg central business district   The emerging markets have had a history of still rising for quite some time after a surge, and some think that the conditions for a long-lasting one are even more favorable than before:

“Calamos is “more positive” on emerging markets than it has been “for some time,” Speed tellsBarron’s, because earnings and business activity are improving, currencies and commodities are stabilizing, fragile countries’ external vulnerabilities have moderated, and the Fed is being deliberate in raising rates. Also, emerging market valuations remain attractive compared to developed markets’.”

Some managers recommend “plays” using multinationals in the developed markets, as we have been recommended previously:

“The managers like tech and consumer plays that benefit from an expanding emerging market middle class, and they also own developed market companies with emerging market exposure such as oil giant Royal Dutch Shell (RDSA).”

And they are adding a South African company to their portfolio:

“…South Africa miner AngloGold Ashanti (AU).”

Find out where we’re going with these Africa investment ideas and concepts by signing up for our free newsletter! Sign up in the box to the right, and as a gift for doing so, get our FREE report: “How to Profit From Africa’s Growth Without Leaving Home”. So what are you waiting for?  Do it right now!

“Why the EM’s Rise Can Last”: http://www.barrons.com/articles/why-the-ems-rise-can-last-1471670364