South African equities have outperformed MSCI Emerging Markets since COVID, yet global inflows remain stubbornly absent. Why?
In this episode of Ask an Analyst, Deanne Gordon, Head Equity Strategy, SBG Securities, explains why the disconnect between performance and flows may be driven more by perception than fundamentals.
She explores:
- Why investors fixate on SA’s low GDP growth while ignoring stronger earnings growth.
- How Corporate SA continues to deliver despite a tough operating backdrop.
- Why SA equities still trade at deep discounts to MSCI EM.
- How Regulation 28 changes drove a one-off offshore flow shock.
- Why that flow pressure may now be largely exhausted.
- What falling bond yields and a firmer rand could mean for valuations.
The takeaway: SA equities may be under-owned, undervalued, and closer to a re-rating than markets expect.
Watch the full analysis.
The views and opinions shared are for informational purposes only. They are not intended to serve as investment advice and do not represent the views or opinions of Standard Bank. This information should be used as a starting point for generating investment ideas, and should not be relied upon as the basis for making investment decisions. The Standard Bank of South Africa Limited will not be responsible for the results of any investment decisions made based on the views provided.
