SA portfolio inflows plummet in second quarter, data shows
Inward investment into South African bonds and equities shrank to R16.6bn from R89.4bn in the first three months of the year
Portfolio investments into the South African economy fell sharply in the second quarter, as investor risk-aversion towards emerging markets rises, Reserve Bank data showed on Tuesday. Inward investment into South African bonds and equities shrank to R16.6bn from R89.4bn in the first three months of the year, the Bank said. Appetite for bonds was hardest-hit, with non-resident investors cutting their purchases to a net R3.8bn in the second quarter from R46.9bn in the first quarter. Purchases of equities fell to R12.8 from R42.5bn. The economy relies partly on volatile portfolio flows to fund its budget and current account deficits. The Bank did not give a reason for the slump in investment into South African assets, but during the second quarter, global investors were scaling back their allocations towards emerging markets as worries about the health of the Turkish and Argentinian economies grew. This was followed by a steep sell-off in emerging-market assets in the third quarter, as...
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