ICT, Access Bank deals ahead; investors eye Deutsche Bank, Brexit; Lat-Am quieter, weaker

By Christine Van Dusen

Atlanta, Oct. 3 – Philippines-based International Container Terminal Services Inc. and Nigeria’s Access Bank plc advanced deals on Monday as investors closely watched developments with Deutsche Bank AG, as well as the United Kingdom’s plans to exit the European Union.

“We’re going into the last quarter of the year, which looks like a decent start, driven by a combination of rumors on a lower settlement between Deutsche Bank and the U.S. Department of Justice, recovering oil prices and a positive sentiment led by Asia,” a London-based analyst said. “Overall sentiment should remain in favor for [emerging markets] credit, despite some rather mixed weeks in September.”

While several risk factors emerged in September – the U.S. presidential campaign, monetary policy, fears about the German banking system and ratings actions – they “haven’t derailed the benevolent market backdrop for EM risks so far,” he said.

Monday also saw corporate bonds from Colombia weaken as the Colombian electorate rejected a peace deal with the FARC rebels.

“We expect some correction in Colombia’s bond market and increased currency pressure as a result of this announcement,” according to a report from Schildershoven Finance BV.

Banks were taking the biggest hit, a trader said, while Ecopetrol SA was weaker and quieter.

Banks from Peru continued to trade within their recent range, and high-grade names were unchanged, the trader said.

© 2015 Prospect News.
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