Markets and investing

Could production in Nigeria and Libya undermine OPEC cuts?

A quick look at stocks, forex and commodities

Restoring output in Libya and Nigeria could seriously erode the effectiveness of OPEC’s output cut. Supply cuts by Saudi Arabia and Abu Dhabi, however, are keeping prices steady for the time being. Meanwhile gold and platinum hit four-week and eight-week highs respectively.

Naira lost three points to the dollar as it closed at N493 to a dollar on the parallel market but remained stable at N305 on the official market. Kenya’s central bank will likely face an uphill task keeping the shilling stable in 2017. The country’s forex reserves are at record lows. Rand hit a four-week high.

The African Development Bank (ADB) board of directors has approved the institution’s borrowing programme for 2017, for an amount of $8.4 billion (Shsh30.4 trillion). Nigeria’s central bank is seeking to raise N329.93 billion in treasury bills.

While the JSE All Share closed 0.64% lower, the Egyptian stock market benchmark index roared 1.71% on the last day of trading.