The Week Ahead - April 29 – May 2 2014
South Africa and Africa
South Africa’s trade and credit extension data as well as trade balance are the key highlights of this week’s domestic data calendar. The Reserve Bank will release the private sector credit extension (PSCE) data on Wednesday, with economists expecting figures to reflect tighter lending criteria by financial institutions. PSCE growth likely moderated to 8.3% year on year last month after increasing 8.7% in February.
Market attention will on Wednesday afternoon shift to the release of the March trade balance by the South African Revenue Service. Preliminary trade figures are likely to show that South Africa’s trade account fell back into a slight deficit in March after posting a surprise R1.7-billion surplus in February. The trade balance records South Africa’s trade with other countries including Botswana, Lesotho, Namibia and Swaziland.
Markets should be able to get a better indication of manufacturing-sector activity when the Kagiso purchasing managers’ index (PMI) is released on Friday.
In the rest of Africa, central bank in Angola, Egypt and Mauritius are expected to announce their decisions on rates. Kenya, Namibia, Tanzania and Morocco are scheduled to report their latest money supply figures. These will be followed by Kenya’s and Uganda’s consumer price index (CPI) readings later in the week.
On the political front, campaigning ahead of the May 7 general elections in South Africa will enter the final home stretch this week as main political parties are expected to host their final election rallies at the weekend. The spotlight is likely to fall on the closing rallies of the Democratic Alliance on Saturday followed by the African National Congress and Economic Freedom Fighters on Sunday.