A business-friendly coalition government and plans by Anglo American Plc to spin off one large subsidiary and possibly list another may trigger a sustained rally in South African stocks, the head of the main local bourse said.
“We’ve seen an improved investor sentiment and a shift toward South Africa and that was largely hinged on the macro optimism on political stability and also largely on the stability in our electricity,” Fourie said. That forced the ANC to appoint ministers from other parties, including the business-friendly Democratic Alliance, to the cabinet.
“We have a number of stocks that are deeply undervalued,” she said. “Investors are starting to see that opportunity emerging as the government of national unity is stabilizing and building more and more confidence.” Further out, trading could receive a fillip as Anglo, the mining company founded in Johannesburg in 1917 and which once dominated the stock exchange, reacts to a failed takeover bid by BHP Group Ltd.
Any rally would come after a decade in which the country’s main stock index has lost 7% in dollar terms while key US stock indexes have more than doubled.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: Chinese E-Commerce Companies Popular in South AfricaRotondwa Mbadaliga is a self-professed 'shopping addict.' The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.
Source: allafrica - 🏆 1. / 99 Read more »