EM CEEMEA CREDIT: KZOKZ: Considers Yuan Denominated bonds
KazMunayGas– Considers Yuan Denominated bonds
(KZOKZ: Baa1/BB+/BBB)
- We don’t see any impact on credit given the low leverage, 0.5x at the end of 1Q25 and solid FCF generation see link for 1Q25 results: https://mni.marketnews.com/3H7ge8V. However, the company is looking for “cheap” funding options, which by itself is not surprising and is evaluating Yuan denominated issuance as well as selling bonds regionally in GCC according to the CEO. KazMunayGas has been increasing oil and gas production, +5.8% and +12.7% YoY in 1Q25 driven mainly by Tengiz. We expect the funds will be directed to capex to increase production further.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUDUSD TECHS: Bulls Remain In The Driver’s Seat
- RES 4: 0.5682 High Nov 12 ‘24
- RES 3: 0.6550 61.8% retracement of the Sep 30 ‘24 - Apr 9 bear leg
- RES 2: 0.6528 High Nov 29 ‘24
- RES 1: 0.6494 High May 05
- PRICE: 0.6456 @ 07:58 BST May 6
- SUP 1: 0.6366/6327 20- and 50-day EMA values
- SUP 2: 0.6275 Low Apr 14
- SUP 3: 0.6181 Low Apr 11
- SUP 4: 0.6116 Low Apr 10
AUDUSD traded higher Monday and a bullish theme remains intact. The recent breach of 0.6450, the Apr 29 high, marks the end of the recent pause in the bull cycle and confirms a resumption of the uptrend. Note that moving average studies are in a bull-mode position, highlighting an uptrend. Sights are on 0.6528, the Nov 29 ‘24 high. Initial key support to monitor is 0.6327, the 50-day EMA.
EQUITIES: EU Cash Opening Calls
Estoxx: +0.20%, Dax: +0.08%, CAC: +0.06%.
SWEDEN: Weakest Services PMI Since September 2023
The Swedish April services PMI fell further into contractionary territory to 48.4 (vs 49.3 prior), the lowest since September 2023. The three analyst forecasts submitted to BBG had a range of 49.0-50.5. The release appears broadly consistent with the April Economic Tendency Indicator services sub-component, and underscores the downside risks to economic activity stemming from US tariff-related uncertainty. The Riksbank are unanimously expected to hold rates at 2.25% on Thursday, but growth risks leave scope for a dovish guidance tilt.
- Expected employment fell to a 6-month low of 45.3 in April, from 47.3 prior.
- Meanwhile, the supplier input price index was 56.2 (vs 58.9 prior).
- Production fell to 46.4 (vs 47.9 prior), while new orders were 47.6 (vs 48.8 prior).
- Supplier deliveries rose to 55.4 (vs 53.7 prior), while order backlogs ticked up to 50.0 (vs 49.7 prior).
- Expected production ahead remained expansionary at 58.1 (vs 59.9 prior).
