{"id":823551,"date":"2025-05-08T17:17:00","date_gmt":"2025-05-08T15:17:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=823551"},"modified":"2025-05-08T17:17:05","modified_gmt":"2025-05-08T15:17:05","slug":"foreigners-dipping-back-into-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/823551\/foreigners-dipping-back-into-south-africa\/","title":{"rendered":"Foreigners dipping back into South Africa"},"content":{"rendered":"\n

The longest streak of inflows into South Africa\u2019s equity market in more than two years signals a pickup in foreign demand as investors look for alternatives to US stocks.<\/p>\n\n\n\n

Non-residents have been net buyers of shares on the Johannesburg Stock Exchange for eight successive days through Wednesday, the longest streak since August 2022, according to JSE Ltd. data.<\/p>\n\n\n\n

The purchases have been relatively small, at an average of R376 million a day compared with daily of outflows of more than R1 billion for the whole of the year. <\/p>\n\n\n\n

But it\u2019s a sign of changing sentiment following nine straight years of outflows, as lackluster economic growth, a weakening rand and political risks dimmed the market\u2019s allure.<\/p>\n\n\n\n

Year-to-date outflows from the $1.1 trillion market through Wednesday amounted to $4.9 billion.<\/p>\n\n\n\n

South Africa\u2019s benchmark FTSE\/Africa All Share Index has rebounded to hit record highs after plunging more than 9% in the wake of President Donald Trump\u2019s sweeping tariff announcements on April 2. <\/p>\n\n\n\n

The gauge has gained of 8.8% this year, with miners the biggest contributors as the price of gold surged.<\/p>\n\n\n\n

And with the rand also erasing its post-tariff losses to strengthen against the greenback, dollar investors have pocketed a return of 13%, compared with declines for the S&P 500 and the MSCI World Index of developed-nation stocks.<\/p>\n\n\n\n

Still, the South African stocks remain cheap compared with developed-nation peers. <\/p>\n\n\n\n

The benchmark is trading at an estimated forward price-earnings ratio of 14.7, compared with 19.4 for the MSCI World Index.<\/p>\n\n\n\n

The index edged 0.2% lower by 3:28 p.m. in Johannesburg Thursday, hovering near its May 2 record high.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

The longest streak of inflows into South Africa\u2019s equity market in more than two years signals a pickup in foreign demand as investors look for alternatives to US stocks.<\/p>\n","protected":false},"author":59,"featured_media":667287,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[],"class_list":["post-823551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823551","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=823551"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823551\/revisions"}],"predecessor-version":[{"id":823554,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823551\/revisions\/823554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/667287"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=823551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=823551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=823551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}