South African Stocks Set to Ride Broad EM Rally, Momentum Says

South African stocks will benefit from a broader rally in emerging markets in 2026 due to attractive valuations and strong profits, according to Momentum Investments.

The combination of improving fundamentals, expected dollar weakness and diversification flows under a Trump administration could result in “material” inflows in 2026, said Herman van Papendorp, head of asset allocation at the Johannesburg-based asset management firm, which oversees the equivalent of about $44 billion.