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SA’s economy is producing a steady stream of negative headlines: recession, record unemployment and the weakest manufacturing in eight years. Amid all this bad news, some locally traded stocks are beginning to look attractive. Investors seeking value should keep an eye on lenders, diversified industrial companies, healthcare providers and pharmaceuticals, said Feroz Basa, who helps manage about $150m as joint head of Old Mutual Investment Group’s emerging-markets unit. "You’re finding some pockets of opportunity in banks," particularly in Barclays Africa Group, following the sell-down by Barclays, Basa said by phone from Cape Town. The stock trades at the lowest valuation among its peers, as measured by its price-to-earnings ratio and "the dividend yield is very attractive", he said. After rising 43% last year, Johannesburg’s index of banking stocks has lost 0.4% in 2017. While Johannesburg’s main stock gauge climbed to a record high this week, the frail local economy has held back ...

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