• Contact
Wednesday, February 1, 2023
  • Login
The African Business - News About African business
  • Home
  • EconomyNew
    Nigeria extends deadline to swap old currency notes by 10 days

    Nigeria extends deadline to swap old currency notes by 10 days

    Shocking IMF report reveals Angola and Ethiopia to surpass Kenya as top economies in Sub-Saharan Africa

    Shocking IMF report reveals Angola and Ethiopia to surpass Kenya as top economies in Sub-Saharan Africa

    Ethiopia and the World Bank sign financing agreements worth $745 million

    Ethiopia and the World Bank sign financing agreements worth $745 million

    Trending Tags

  • Business
    World’s Richest Rankings: Aliko Dangote maintain his position as Africa’s richest man

    World’s Richest Rankings: Aliko Dangote maintain his position as Africa’s richest man

    Global tech billionaires eye Zambia’s electric vehicle battery mines

    Global tech billionaires eye Zambia’s electric vehicle battery mines

    Africa will have 57 million pay TV subscribers by 2028, report

    Africa will have 57 million pay TV subscribers by 2028, report

    Africa startups defy funding slump as debt financing fuels growth

    Africa startups defy funding slump as debt financing fuels growth

    Port of Maputo achieves new handling record, sees soaring chrome throughput

    Port of Maputo achieves new handling record, sees soaring chrome throughput

    Court told Anglo turned blind eye to Zambian lead poisoning

    Court told Anglo turned blind eye to Zambian lead poisoning

    Ethiopian Airlines set to fly to Atlanta

    Ethiopian Airlines set to fly to Atlanta

    Angola: Poor Management of the Petroleum Sector with Effects on Declining Production

    Angola Sonangol plans to list on Angolan stock exchange by 2027

    Nigeria artists conquer the NFT marketplace in Africa

    Nigeria artists conquer the NFT marketplace in Africa

  • Finance
    Nigeria launches payments card program to rival Visa and Mastercard

    Nigeria launches payments card program to rival Visa and Mastercard

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    There was a 25% increase in finance app installs across Africa between 2021 and 2022

    There was a 25% increase in finance app installs across Africa between 2021 and 2022

    Yellow Card expands payment feature across Africa

    Yellow Card expands payment feature across Africa

    Government starts payment of $674,5 trillion matured securities

    Government starts payment of $674,5M matured securities

    South African rand steady with investor focus on Fed minutes

    South African rand steady with investor focus on Fed minutes

    South Africa recently declared bitcoin and other cryptocurrencies to be financial products

    South Africa recently declared bitcoin and other cryptocurrencies to be financial products

    Angola banks entry into local Bourse gives credibility to economy

    Angola banks entry into local Bourse gives credibility to economy

  • Opinion
  • Lifestyle
  • Sports
  • Green Economy
No Result
View All Result
  • Home
  • EconomyNew
    Nigeria extends deadline to swap old currency notes by 10 days

    Nigeria extends deadline to swap old currency notes by 10 days

    Shocking IMF report reveals Angola and Ethiopia to surpass Kenya as top economies in Sub-Saharan Africa

    Shocking IMF report reveals Angola and Ethiopia to surpass Kenya as top economies in Sub-Saharan Africa

    Ethiopia and the World Bank sign financing agreements worth $745 million

    Ethiopia and the World Bank sign financing agreements worth $745 million

    Trending Tags

  • Business
    World’s Richest Rankings: Aliko Dangote maintain his position as Africa’s richest man

    World’s Richest Rankings: Aliko Dangote maintain his position as Africa’s richest man

    Global tech billionaires eye Zambia’s electric vehicle battery mines

    Global tech billionaires eye Zambia’s electric vehicle battery mines

    Africa will have 57 million pay TV subscribers by 2028, report

    Africa will have 57 million pay TV subscribers by 2028, report

    Africa startups defy funding slump as debt financing fuels growth

    Africa startups defy funding slump as debt financing fuels growth

    Port of Maputo achieves new handling record, sees soaring chrome throughput

    Port of Maputo achieves new handling record, sees soaring chrome throughput

    Court told Anglo turned blind eye to Zambian lead poisoning

    Court told Anglo turned blind eye to Zambian lead poisoning

    Ethiopian Airlines set to fly to Atlanta

    Ethiopian Airlines set to fly to Atlanta

    Angola: Poor Management of the Petroleum Sector with Effects on Declining Production

    Angola Sonangol plans to list on Angolan stock exchange by 2027

    Nigeria artists conquer the NFT marketplace in Africa

    Nigeria artists conquer the NFT marketplace in Africa

  • Finance
    Nigeria launches payments card program to rival Visa and Mastercard

    Nigeria launches payments card program to rival Visa and Mastercard

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    MoneyGram joins forces with BOTIM to launch international money transfer to over 200 countries

    There was a 25% increase in finance app installs across Africa between 2021 and 2022

    There was a 25% increase in finance app installs across Africa between 2021 and 2022

    Yellow Card expands payment feature across Africa

    Yellow Card expands payment feature across Africa

    Government starts payment of $674,5 trillion matured securities

    Government starts payment of $674,5M matured securities

    South African rand steady with investor focus on Fed minutes

    South African rand steady with investor focus on Fed minutes

    South Africa recently declared bitcoin and other cryptocurrencies to be financial products

    South Africa recently declared bitcoin and other cryptocurrencies to be financial products

    Angola banks entry into local Bourse gives credibility to economy

    Angola banks entry into local Bourse gives credibility to economy

  • Opinion
  • Lifestyle
  • Sports
  • Green Economy
No Result
View All Result
The African Business - News About African business
No Result
View All Result
Home Finance

Is there still value in South African equities?

TAB by TAB
22/12/2021
in Finance
0
Is there still value in South African equities?
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

Is there still value in South African equities?

Sean Neethling, portfolio manager of Morningstar Investment Management South Africa discusses which equity markets are offering investors the most attractive returns at the moment, and attempts to answer the question of whether local is still lekker, or should investors be venturing more into offshore equities?

Related posts

Nigeria launches payments card program to rival Visa and Mastercard

Nigeria launches payments card program to rival Visa and Mastercard

30/01/2023
1
Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

Mastercard and ZoodPay join forces to launch the first virtual installment card across EEMEA

26/01/2023
1

Is there still value in South African equities?

At the 2021 Morningstar Investment Conference, I had the privilege to sit down with Chantelle Baptiste (Fairtree), Chris Freund (Ninety One) and Shaun Le Roux (PSG Asset Management) to discuss local and global equities.

In this panel discussion, I was again reminded of how volatile and uncertain equity markets can be, and how the best opportunities can often be found in less popular and unloved parts of the market.

The past 20-months have been unprecedented. Markets bottomed out, only to recover to historic highs. Just when you think you know what will happen next, the ballgame changes. It’s no wonder investors often don’t know which way to turn to and sometimes seek safety in cash-like instruments.

Let’s first unpack the views from these panellists on equity markets from a global perspective.

Growth is slowing down

Let’s face it – it was mathematically impossible for growth to continue the way it did. It is clear that growth is slowing down, but Ninety One believes that equities are still very likely to outperform other asset classes. Periodic setbacks however are very likely to continue and keep on “testing your mettle”, as Chris Freud put it.

Expect higher inflation and interest rates hikes

The question everyone has been grappling with – Is inflation transitory or more structural in nature? Only time will tell, but there continues to be upward pressure on wage inflation, especially in the US at the moment and the Fed will likely start to raise interest rates in the new year.

The consensus seems to be that as long as the Fed does this in a structured and sensible way, it is unlikely to upset the applecart.

Geopolitics remains an issue

The tension between the US and China continues, the tension in Afghanistan claimed its fair share of airtime and we continue to witness social unrest and riots across the globe.

Isolation and social media accentuated the status quo, social imbalances, and governments continue to be criticised for how they are handling the pandemic. People are fed up, tired and over rules and regulations that don’t seem to be moving the needle.

It’s as good as it gets for a differentiated stock picker in South Africa

In South Africa, every now and then a strange thing happens where everything goes on sale – as was seen in 2003, 2009, 2020 to name a few examples. PSG compare themselves to “kids in a candy store” when opportunities like this arise, and March 2020 was no different.

On a forward-looking basis, PSG still believes that there are fantastic businesses in South Africa that will continue to do well and are trading well below their intrinsic worth.

Fairtree also believes there are some remarkable opportunities left on the local front in retailers, Naspers and Prosus and especially resources. Naspers is a share that has been deeply out of favour for some time now.

Management has been under pressure to close the valuation gap, and recently you have had a lot of Chinese regulation noise in the mix. China is also our biggest trade partner and the largest consumer of commodities. Over the next 18 months, more volatility is expected due to these uncertainties coming from China.

For Ninety One, local banks are the standout opportunity from a valuation perspective. They are well capitalised, and the dividend yields on offer are especially attractive.

Global opportunities

Even though parts of the market are trading at extremely lofty valuations and in some cases near all-time highs, opportunities remain. Globally, we have witnessed a large divergence in the performance of equity markets, and this is even more visible between developed markets and developing markets. Financials, energy, and brewing companies are all opportunities that panellists were excited about.

What about risks?

Be aware of crowded trades: PSG warns against having too many long-duration assets that are very sensitive to interest rates in your portfolio. An example of this is owning US technology at all-time highs, especially with interest rates are at historic lows.

Focus on portfolio diversification. Fairtree unwrapped the merits of gold as a potential portfolio hedge. Gold has historically shown a low correlation to traditional asset classes and can provide downside protection in a scenario where inflation becomes more permanent.

The past two years have been extreme and equity markets took investors for a wild ride. Sticking to a repeatable philosophy, process, and plan is much harder to do when things get tough. Investing is about putting emotion aside, taking a long-term approach and realizing that with volatility comes opportunity.

  • By Sean Neethling, portfolio manager of Morningstar Investment Management South Africa

Is there still value in South African equities?

Source: Businesstech
Previous Post

Global stocks fall on virus concern, tighter Fed policy

Next Post

Shell awards $70,000 to 7 innovative clean energy start-ups in Nigeria

Next Post
Shell awards $70,000 to 7 innovative clean energy start-ups in Nigeria

Shell awards $70,000 to 7 innovative clean energy start-ups in Nigeria

RECOMMENDED NEWS

Ford Motor invests further USD 34,7 m into Gqeberha plant

Ford Motor invests further USD 34,7 m into Gqeberha plant

1 year ago
6
Ethiopia to open up banking sector for foreign financial institutions

Ethiopia to open up banking sector for foreign financial institutions

5 months ago
5
Mastercard strengthens digital payment capabilities across EEMEA

Mastercard strengthens digital payment capabilities across EEMEA

8 months ago
3
Malawi: Lilongwe promotes eco-tourism and reintroduces 263 elephants to Kasungu

Malawi: Lilongwe promotes eco-tourism and reintroduces 263 elephants to Kasungu

6 months ago
3

BROWSE BY CATEGORIES

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized

Ads

Categories

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized
The African Business – News About African business

We bring you the best Premium news about African Business.

Follow us on social media:

Recent News

  • World’s Richest Rankings: Aliko Dangote maintain his position as Africa’s richest man
  • Nigeria launches payments card program to rival Visa and Mastercard
  • Develop enabling legislation to fuel the cannabis sector to new highs and boost the economy

Category

  • Business
  • Economy
  • Finance
  • Green Economy
  • Lifestyle
  • Opinion
  • Sports
  • Uncategorized

Legal Information

Terms and Conditions
Privacy Policy
Complaints Book

  • Contact

© 2021 The African Business

No Result
View All Result
  • Home
  • Economy
  • Business
  • Finance
  • Opinion
  • Lifestyle
  • Sports
  • Green Economy

© 2021 The African Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In