Market Strategy Update: Favouring Select FX And Local Debt

As we head towards the end of 2011, we retain our tactical preference for East African FX and select local debt markets in Sub-Saharan Africa. Meanwhile, we see little to like in the equities sphere. Although major stock markets including Nigeria and Kenya are likely to turn around at some stage over the coming six months, the technicals are discouraging and we therefore retain our neutral stance for the time being. As for fixed income, we continue to see attractive opportunities for foreign investors given the high nominal yields on offer and in some cases, potential for currency

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