Rocky global markets could shake up South Africa’s equities into a good position if risk appetite rises, says Momentum Investments.
South African equities have an attractive valuation, with most being under-owned and undervalued, says economist Sanisha Packirisamy and head of investment research Herman van Papendorp from Momentum Investments.
Momentum pointed to research conducted by SBG Securities that illustrated that apart from insurance, real estate, banks and capital goods, all MSCI South African sectors are currently trading at a discount to MSCI Emerging Markets. As a result of this, South Africa’s market should have “meaningful rerating potential from current cheap valuations when global risk appetite improves,” Momentum said.
Momentum is not the only financial services company predicting positive performance from South Africa’s markets – on 9 January, Jason Swartz, a portfolio manager at Old Mutual Investment Group said that the best return opportunities might be from domestic asset classes going into 2023.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South African rand retreats as dollar edges higherSouth Africa's rand retreated on Friday, losing gains made after U.S. data offered hope inflation was now on a sustained downward trend, potentially allowing the Federal Reserve to slow its policy tightening pace.
Read more »
Huge growth for South African software development company CodehesionSouth African software development company Codehesion has achieved huge growth over the past year, more than doubling its revenue and staff size.
Read more »
South African taxpayers milked dryA good tax system requires the efficient and cost-effective collection of money to fund the state’s endeavours. It should also be viewed as equal by the citizens and be non-distortive.
Read more »
GREEN SHOOTS: South African tractor sales in 2022 reached highest level in 40 yearsSouth African tractor sales reached a 40-year high in 2022, according to the South African Agricultural Machinery Association. Despite the sector’s mounting challenges, commercial farmers are still investing in their businesses — a notable green shoot amid the wreckage that is the country’s economy.
Read more »
South African President Cancels Davos Trip Amid Energy CrisisPresident Cyril Ramaphosa has cancelled a trip to a World Economic Forum meeting in Davos in Switzerland due to the ongoing energy crisis in South Africa. Vincent Magwenya, his spokesperson, said in a January 15, 2022 tweet that the president would be convening a meeting with leaders of political parties, the national energy crisis committee and the board of power utility Eskom. Eskom earlier welcomed an 18.65% tariff increase granted by the National Energy Regulator of South Africa (Nersa), saying it would "positively contribute from a financial and sustainability point of view". Eskom initially sought an increase of 32%, citing higher costs for fuel, decreased generation capacity higher prices from independent power producers. The electricity price hike is expected to take effect from April 1, 2023, with an additional 12.74% tariff increase set for 2024. The country is currently experiencing Stage 6 loadshedding, with rotating power cuts for eight to 12 hours a day. Local news website TimesLive reports that calls for a national shutdown are gathering steam on social media.
Read more »
Zailab – Unrivalled contact centre solution for South African businessesZailab is a proudly South African contact centre platform that offers advanced customer service features at an affordable price.
Read more »