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<\/a><\/p>\nAfrica\u2019s most industrialized economy attracted investors during the first quarter because of the surge in commodity prices and its distance from the conflict in Europe, said Lester Davids, a strategist at Unum Capital in Johannesburg.<\/p>\n
\u201cHigher commodity prices have benefited South Africa\u2019s trade balance, and the geopolitical tensions have seen funds flow out of Russia and into other parts of emerging markets, with South Africa also being a beneficiary of the re-allocation,\u201d he said.<\/p>\n
Here\u2019s are how other assets have fared:<\/p>\n
Appealing Equities<\/strong><\/p>\n As of Wednesday\u2019s close, South Africa\u2019s benchmark stock index had advanced 12% in dollar terms, its best three-month performance since December 2020 and the strongest first-quarter in 16 years.<\/p>\n Gold miners have been among the biggest contributors to the gains as Russia\u2019s invasion of Ukraine spurred demand for bullion. Coal miner Thungela Resources Ltd set the fastest pace, more than doubling as the war prompted a scramble for alternative supplies of the fuel.<\/p>\n Outperforming Bonds<\/strong><\/p>\n The war in Ukraine has upended bond markets and, while yields in South Africa did rise, the debt has remained attractive, thanks to inflation remaining within the central bank\u2019s target range.<\/p>\n South Africa\u2019s local-currency bonds are the second best-performing in emerging markets this quarter with returns of 13% in dollar terms, compared with an average drop of 2.4% among peers.<\/p>\n<\/a>
\nBank stocks have risen to all-time highs, with a sector index advancing for an eighth successive quarter as the outlook for rising interest rates and a strengthening rand attract buyers.<\/p>\n