Foreign investors sold off South African equities at the fastest pace in more than a year in the fourth quarter of 2024, as they piled into the nation\u2019s bonds, leading to smaller portfolio inflows.<\/p>\n\n\n\n
Portfolio inflows fell 26% to R33.4 billion in the quarter, compared with the prior three months, the South African Reserve Bank said in its Quarterly Bulletin published on Thursday.<\/p>\n\n\n\n
Non-residents sold as much as R19.7 billion of South Africa domestic stocks traded on the Johannesburg Stock Exchange, reversing a purchase of R4.1 billion in the third quarter.<\/p>\n\n\n\n
The last time there was a selloff of that magnitude was in the third quarter of 2023, the central bank said in response to Bloomberg questions. That was in contrast with foreigners acquiring debt securities amounting to R53.1 billion, compared to R41.4 billion in the prior quarter.<\/p>\n\n\n\n
The central bank said the net sales of domestic shares by non-residents were dominated by the selling of stocks in the software and computer services sector and precious metals and mining.<\/p>\n\n\n\n
\u201cThe persistent sell-off in the domestic secondary share market by non-residents reflected continued global risk aversion due to, among other factors, ongoing geopolitical tensions, uncertainty around US tariffs, China\u2019s economic slowdown,\u201d the central bank said.<\/p>\n\n\n\n
\u201cThe biggest drivers behind foreigners selling indicates a general decline in investor sentiment toward emerging markets and weak domestic economic growth.\u201d<\/p>\n\n\n\n
Economic growth in South Africa has averaged less than 1% a year for more than a decade.<\/p>\n\n\n\n
Still, foreigners\u2019 net acquisition of debt securities, including proceeds from the government\u2019s two international bond issuances of $3.5 billion, outweighed their disposal of equity securities, the central bank said.<\/p>\n\n\n\n
For the full 2024 year, portfolio investment liabilities switched to an inflow of R6.9 billion, up from an outflow of R99.3 billion in 2023.<\/p>\n\n\n\n
Fourth quarter South African household debt edges down to 62% of disposable income compared with 62.4% in the prior three months.<\/p>\n\n\n\n
South Africa attracts foreign direct investment inflows of R7.5 billion in fourth quarter versus an outflow of R3.2 billion in the third quarter.<\/p>\n\n\n\n
Growth in the country\u2019s nominal unit labor costs slowed to 1.3% in the third quarter from a 3.5% rise in the previous period.<\/p>\n","protected":false},"excerpt":{"rendered":"
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