A European Central Bank (ECB) rate cut will likely lure return hungry investors to South Africa because the JSE’s reputation for having well run companies who pay consistent dividends and have demonstrated good earnings growth for years will put it in the front running as the investment destination of choice according to a recent article in BusinessDay.
ETM market analyst Sean McCalgan also commented that the local bond market has received firm support from offshore clients this year with bond purchases outpacing equity demand for the first time last month. Specifically, foreign purchases of local bonds totaled R9.3bn in May — the highest level since February 2013 and a trend that will likely continue if European bond yields were compressed to 0.1% by an interest rate cut.
South Africa’s local benchmark R186 bond also offers returns as high as 8%.
To read the whole article, ECB rate cut likely to attract new offshore investors to SA, go to the website of BusinessDay.
- Top Emerging Markets Hiking Interest Rates Last Week: Indonesia, UAE & More (Investing.com)
- South African Gold Mines “Would Not Weather Strike” (BusinessDay)
- South Africa Stocks “Expensive Within Emerging Markets” (Moneyweb.co.za)
- Moody’s Downgrades South Africa Banks, Insurance Companies and Others (Moody’s)
- Jacob Zuma Wages War on South Africa’s Institutions (FT)
- At 34.4%, South Africa Officially Has the Highest Unemployment Rate in the World (BusinessReport)
- Naspers’ Tencent Stake Drives the MSCI South Africa Index’s Returns (KraneShares)
- Consumer Prices Likely to Rise Sharply in South Africa – BNP Paribas (BusinessReport)
- South Africa Falls to #56 in the Global Competitiveness Report
- South Africa’s Unemployment Figure Goes Past the 10 Million Mark (Business Report)
- South Africa Business Confidence Hits a 9-year Low (BusinessReport)
- Ramaphosa Takes Tax Gamble as South Africa Targets Debt (Bloomberg)
- South Africa Sees Fresh Start for Economy, With the Same Challenges (NYT)
- South Africa is Looking to a Future Without an Eskom Monopoly Over Country’s Energy Supply (Business Report)
- South Africa’s Economic and Potential Downgrade Woes (Bloomberg)