Why are foreign investors still avoiding SA's dirt-cheap stocks?

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Offshore investors have been net sellers of South African equities for 11 straight days, the longest streak of outflows in six months

South African stocks are the cheapest on record relative to their emerging-market peers, but they are still not cheap enough for foreign investors.

They have sold a net R25.4bn in the year to date, the largest outflow for the corresponding period since Bloomberg started compiling the data in 1999. But stagnant economic growth, worries over electricity supplies and the volatile rand have deterred potential investors in Africa’s biggest equity market, with a capitalisation of about $473bn.

“The fact that foreigners are rotating out of the stock market suggests that the international investor community is not convinced that the growth-enhancing reforms introduced thus far will suffice to kick start the domestic economy.”

 

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Cheap junk. That's why.

They are cheap and nasty shares. Thanks cANCer.

Because we are becoming, sorry I mean, we are already a 'Banana Republic'.

They know the difference between crap and caution....

Because SA is a mess and the current govt do not have the will or ability to sort it out-things always clearer from a distance.

Cheap is relative

Violence and strikes.

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