South Africa

The busy equity block trade action in Europe since the US election has continued into its third week, though market participants are beginning to brace for the outcome of the Italian referendum on Sunday.

Holders of South African assets face another nervous Friday waiting for a sovereign rating decision, this time from S&P.

MTN Zakhele, a black economic empowerment scheme, has unwound its position in MTN Group, the South African mobile telecoms company, through the first block trade in the company’s shares for six years.

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.