{"id":455846,"date":"2020-12-09T13:47:31","date_gmt":"2020-12-09T11:47:31","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=455846"},"modified":"2020-12-09T13:47:31","modified_gmt":"2020-12-09T11:47:31","slug":"the-stars-are-aligning-for-south-african-stocks","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/455846\/the-stars-are-aligning-for-south-african-stocks\/","title":{"rendered":"The stars are aligning for South African stocks"},"content":{"rendered":"

Equity strategists are making a growing case for 2021 to be a good year for South African stocks as global investors respond to the anticipated widespread availability of a coronavirus vaccine with an increased appetite for riskier assets.<\/p>\n

Local money manager Momentum Investments was the latest to add its voice on Tuesday, suggesting that \u201cthe stars are finally aligning\u201d for the South African equity market.<\/p>\n

According to the Pretoria-based firm, investors will migrate out of haven assets like bonds, cash and gold, and increase their holdings in equities, with non-U.S. stocks particularly in favour.<\/p>\n

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

Momentum\u2019s upbeat view is similar to one expressed by JPMorgan Chase & Co., which turned overweight on South African stocks in\u00a0late November.<\/p>\n

Earlier on Tuesday, John Morris of Bank of America Global Research said the country had earned its first overweight rating from the bank in five years.<\/p>\n

He spoke shortly after figures showed Africa\u2019s most-industrialized economy expanded by an annualized 66.1% in the third quarter, exiting the longest recession in 28 years.<\/p>\n

\u201cYou are going into an upturn with better profits,\u201d Morris, BofA\u2019s South African investment strategist, said during a virtual briefing.<\/p>\n

That will result in upward earnings revisions, which are \u201cvery supportive for value in the emerging markets.\u201d BofA sees 35% potential upside over the next 12 months for South African stocks, helped by a value catch-up trade.<\/p>\n

BofA is bullish on South Africa into the first half of 2021, but will reassess into the latter part of the year for what could be a more difficult period with higher volatility, given the country\u2019s rising debt costs.<\/p>\n

The benchmark South African stock index gained as much as 0.9% on Wednesday, touching the highest since August 2018.<\/p>\n

\n

Read: Rand breaks below R15.00 vs dollar on better than expected GDP growth<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Equity strategists are making a growing case for 2021 to be a good year for South African stocks as global investors respond to the anticipated widespread availability of a coronavirus vaccine with an increased appetite for riskier assets.<\/p>\n","protected":false},"author":59,"featured_media":274233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-455846","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\/455846","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=455846"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/455846\/revisions"}],"predecessor-version":[{"id":455850,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/455846\/revisions\/455850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/274233"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=455846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=455846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=455846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}