The South African unit of M&G, the UK fund manager overseeing more than $390 billion in assets, sees opportunities in investing in the nation’s industrial and financial companies as earnings growth may surprise.
Some of these companies have recovered faster from Covid than many in the market anticipated, said Kaitlin Byrne, a Cape Town-based equities fund manager at the firm. They offer an alternative for investors to the Johannesburg market’s large resources segment, she said in an interview.
South Africa’s economy is back at the size it was before the pandemic struck, after expanding 1.9% in the three months through March, a potential boost for the financial sector. While the country’s main stock index slipped 10% in the first half, that was a better performance than the benchmark for emerging-market shares, which slumped twice as much.
The Foschini Group is an example of a company that has bounced back from Covid better than anticipated. Sentiment around the Cape Town-based retailer just after Covid signaled “a very slow trajectory, but earnings came back a lot faster than the market had priced in,” Byrne said. The company swung from a loss to a profit when it reported full-year earnings on June 10.
Mobile phone giant MTN was valued by some purely on its South African operations, with a larger-than-justified discount on its businesses elsewhere because of regulatory and other risks, Byrne said. MTN’s attractiveness was increased by its businesses in Nigeria – its largest market – and Ghana, which are currently growing above 20% annually, she said.
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.
3 Farm attacks, 1 farm murder in South Africa – June 2022 - South Africa TodayDuring June 2022, there were three farm attacks and one farm murder in South Africa. During May 2022 there were 10 attacks and 2 farm murders
Read more »
South Africa: Why the South African State Should Not Subsidise Minibus Taxi OwnersAnalysis - Millions of South Africans rely on minibus taxis to get around. Without these vehicles, people wouldn't be able to get to work, school or simply visit friends and family. Data from Statistics South Africa's Quarterly Labour Force surveys suggest that there are around 250,000 minibus taxi drivers in the country; there are likely about the same number of minibus taxis.
Read more »
South Africa: Plasma Gangs - How South Africans' Fears About Crime Created an Urban LegendAnalysis - Around the middle of 2013 a series of stories appeared in the South African press about a new phenomenon called 'plasma gangs', presented as the latest iteration of the country's crime crisis. Journalists, broadcasters, police and government spokespeople, social media users and local residents shared tales online and in mainstream media of the frightening exploits of these gangs, said to be located in Alexandra (Alex) township in the north of Johannesburg.
Read more »
Danny Jordaan confirms talks of VAR in South AfricaThere might be light at the end of a dark officiating tunnel in South Africa, with the idea of a Video Assistant Referee being discussed by the country’s top brass. SLSiya Read more:
Read more »
11 new SUVs and crossovers in South Africa this year – with pricingAutomakers continue to fuel South Africa’s fast-growing SUV/crossover segments with models varying in price and size, and 2022 to date, has been no different.
Read more »
South Africa beat Wales 32-29 in first Test thrillerThe Springboks hosted Wales in the first of three tests at Loftus on Saturday.
Read more »