Foreign Investors Flock to South African Bonds, Skip Stocks
- Non-residents set for ninth straight year of net stock sales
- Local bonds favored as economic outlook brightens, says UBS
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Foreign investors are wading into South African government bonds while steering clear of equities, despite a stock-market surge that’s left emerging-market peers in its wake.
Non-residents have purchased a net 25.8 billion rand ($1.4 billion) in South African bonds this year, according to data from the Johannesburg Stock Exchange. By contrast, they’ve sold a net 127 billion rand of equities - heading for the ninth straight year of outflows.