×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

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 ...

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 articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.