Foreign investors sold nearly R600m worth of local shares on a net basis last week, bringing the tally of shares sold so far in 2017 to R31.7bn. Foreigners have instead preferred local bonds over equities, which Nedbank Corporate and Investment Banking (CIB) analysts have attributed to policy uncertainty in the US. "Flows are likely to remain volatile, given political and policy uncertainty in the US, and any flows into SA are likely to be directed to safer bonds over riskier equities." Offshore investors bought a net R785.53m worth of local bonds over the past week, helping the rand to fresh multi-month highs to the dollar as US Federal Reserve struck a less aggressive tone on future rate hikes.
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