South African equities have had a strong performance, with Capitec leading the way over the last 12 months. <\/p>\n\n\n\n
According to Nedgroup Investment’s latest pulse, June closed out the first half of 2024, with the economy proving turbulent.<\/p>\n\n\n\n
However, it was supported by increased control over inflation and subsequent investor confidence. <\/p>\n\n\n\n
“The strength of global equities year to date in 2024 can partially be attributed to idiosyncratic market drivers, such as generative artificial intelligence or AI,” the group said.<\/p>\n\n\n\n
In June alone, South African equities increased by 4.1%, far above the 2.3% in Global Equity. <\/p>\n\n\n\n
Over the second quarter of 2024, South African equities increased by 8.2%, while Global Equity only increased by 3.0%. <\/p>\n\n\n\n
“Looking ahead, we expect economic resilience to continue, particularly in the US, which could mean a recession is averted.” <\/p>\n\n\n\n
“Financial conditions may start to loosen throughout the period, which will help support economics more broadly.” <\/p>\n\n\n\n
Bank of America\u2019s (BofA’s) latest fund manager survey also showed that 59% of managers are bullish on equities despite the ongoing uncertainty surrounding the GNU talks at the time of the survey. Much of this uncertainty had to do with the makeup of the Cabinet, which has now been resolved. <\/p>\n\n\n\n
In the BofA survey, 71% of managers said they are optimistic about equities for the next three to five years, while 82% said they are likely to bring back offshore funds if domestic returns look superior.<\/p>\n\n\n\n
Looking at a sector-specific level, fund managers preferred banks, software and metals& mining.<\/p>\n\n\n\n