{"id":244409,"date":"2018-05-14T16:12:35","date_gmt":"2018-05-14T14:12:35","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=244409"},"modified":"2018-05-14T16:12:35","modified_gmt":"2018-05-14T14:12:35","slug":"investors-scored-big-betting-on-the-rand-last-week-and-theres-more-to-come","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/244409\/investors-scored-big-betting-on-the-rand-last-week-and-theres-more-to-come\/","title":{"rendered":"Investors scored big betting on the rand last week – and there’s more to come"},"content":{"rendered":"

In the week that foreign investors dumped the most South African bonds since the financial crisis, those who sat tight reaped the best carry return in emerging markets.<\/p>\n

Non-residents sold a net R15 billion ($1.23 billion) of South African bonds in the five days ending 11 May, the most since the week ending 24 October 2008, according to data compiled by Bloomberg.<\/p>\n

The rand\u2019s carry return in the period was 2.1%, more than double that of the second-placed ruble.<\/p>\n

Higher US treasury yields and global risk-off sentiment have attracted money to the dollar, with emerging-market assets seeing the biggest outflows since 2016 in the week ending May 9, according to Bank of America Merrill Lynch.<\/p>\n

Still, the strengthening rand and yields among the highest in emerging markets made the South African debt a good bet, according to Nedbank Group Ltd.<\/p>\n

\"\"<\/a><\/p>\n

\u201cReal yields are still fairly attractive for foreign investors and when global tensions do ease, flows may normalize,\u201d said Reezwana Sumad, a Johannesburg-based analyst at Nedbank.<\/p>\n

The rand was little changed at 12.2601 per dollar by 1:54 pm (Monday, 14 May) in Johannesburg after gaining 2% last week.<\/p>\n

The currency may strengthen to 11.50 over the next six months, according to Goldman Sachs Group Inc which recommended on 9 May\u00a0 shorting the greenback against the rand, targeting a return of 10%.<\/p>\n

\n

Read: Where South Africans should be looking to invest right now<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

In the week that foreign investors dumped the most South African bonds since the financial crisis – those who sat tight reaped the best carry return in emerging markets.<\/p>\n","protected":false},"author":59,"featured_media":114832,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-244409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/244409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=244409"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/244409\/revisions"}],"predecessor-version":[{"id":244425,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/244409\/revisions\/244425"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/114832"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=244409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=244409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=244409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}