South Africa

South African assets were facing another week of uncertainty as reports emerged on Monday that ANC leaders were preparing a vote of no confidence against president Jacob Zuma and traders warned of the potential for a ratings downgrade on Friday.

The busy equity block trade action, widely predicted by ECM bankers when the US presidential election produced a bounce in share prices, has continued this week with a string of sales totalling over $1.5bn.

Rhodes Food Group, the South African producer of canned food and ready meals, has completed a R663m ($46m) capital increase, through an accelerated bookbuild launched on Wednesday night.

Daily portfolio flows to emerging markets have fallen since the US election, with the seven day moving average declining to its the lowest level since August 2015, according to the Institute of International Finance.

Bayer, the German life sciences group, picked Tuesday night to launch the first part of its $19bn equity financing for its $66bn takeover of Monsanto. Bayer's deal comes as equity markets are revitalised by the new conviction that Western policy is shifting to reflation.

Shares in Dis-Chem Pharmacies, the South African retail pharmacy group, closed 16% above their offer price on their debut on Friday, after the company had raised R4.38bn ($305m) by pricing its IPO slightly above the middle of its range on Monday.

Dis-Chem Pharmacies, the South African retail pharmacy group, has tightened the price range on its Johannesburg IPO, which values it at up to R16bn ($1.1bn).

South African Eurobonds rallied a half to three-quarters of a cash point this week after fraud charges against finance minister Pravin Gordhan were dropped on Monday. Now both the sovereign and FirstRand Bank are hitting the road.

October was the busiest month for CEEMEA borrowers on record, with $37.5bn of new bonds issued. Even if Saudi Arabia’s $17.5bn mega deal was not included, volumes were way above the five year average of $14bn. But as the US elections approach, primary issuance has wound down.

South Africa has announced a series of investor meetings that coincides with a half to three-quarters of a cash point rally of the country’s Eurobonds after fraud charges against finance minister Pravin Gordhan were dropped on Monday.

The IPO of Dis-Chem Pharmacies, the South African retail pharmacy group, was covered at its largest possible size two working days into the bookbuild, as the South African rand rallied on news that finance minister Pravin Gordhan will no longer face fraud charges.

South African assets rallied on Monday after its National Prosecuting Authority (NPA) dropped fraud charges against embattled finance minister Pravin Gordhan, setting a stronger tone for FirstRand Bank to engage with investors next week.