Should we have more interest in banking?
Investors can pick longer-term winners and losers in the sector now while exploiting short-term pricing dislocations
The banking sector in SA remains one of our last bastions of hope. There’s a scandal or two from time to time, but they generally pale in comparison to the shenanigans global banking giants get up to. Our local sector is strongly regulated and our banking executives are world class.
For investors in the local market, the leading banks offer decent dividend yields and fairly consistent returns, though the year of a major crisis is always ugly, with impairments to loan books. Fans of pairs trading (long and short positions in stocks in the same sector) can also find plenty of opportunities in this sector...