Bank valuations are at a 30-year low, says Allan Gray

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 63%

Business Business Headlines News

Investment firm has increased stakes in Standard and FirstRand and expects the big four to survive the pandemic without requiring more capital

SA’s largest investment manager has nailed its colours to the mast of two of the country’s largest banks as share prices have capitulated to 30-year lows in anticipation of sharply rising bad debt expenses and lower transactional income.

“The valuations are the lowest they have been since the 1980s, when expectations of the market were being informed by sanctions and the Rubicon speech. So the market is pricing in a very severe situation. The question is whether the market has overreacted or whether the valuations adequately reflect the risks,” says Tim Acker, portfolio manager at Allan Gray.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

WATCH: Why the Bank cut rates for the fifth time this yearBusiness Day TV talks to Isaah Mhlanga from Alexander Forbes and Razia Khan from Standard Chartered
Source: BDliveSA - 🏆 12. / 63 Read more »

WATCH: Why the Bank cut rates for the fifth time this yearBusiness Day TV talks to Isaah Mhlanga from Alexander Forbes and Razia Khan from Standard Chartered
Source: BDliveSA - 🏆 12. / 63 Read more »