The heads of two of SA’s top investment banking houses, Investec and RMB, expect record low equity valuations and the global search for yield to embolden foreign investors to pursue deals, such as mergers and acquisitions (M&A), in the country.

“If you look at the SA component [that has exposure to the local economy] of the JSE, despite the recent rise it does look relatively cheap,” said RMB CEO James Formby. “I think the search for yield is going to continue to divert money from low-yielding debt instruments into equity and, at some point, that will mean attention will come to undervalued SA assets.”..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now