For fourth straight week, foreign investors buy fewer South African bonds
Foreign investors eased off buying South African bonds for the fourth week running, but were net buyers of local equities over the past week. Foreigners sold a net R1.86bn worth of local bonds last week, which was generally driven by domestic politics, including the release of the State of Capture report by former public protector Thuli Madonsela, which benefited the rand. The latest net bond outflows bring down the tally so far in 2016 to R54.12bn, according to JSE data. Despite the drop, the figures still measure favourably from the matching period in 2015, when offshore buyers bought a net R14.81bn. For most of this year, local bonds have benefited from the global hunt for a higher yield as a result of extremely low interest rates in the developed markets. Meanwhile, foreign investors bought a net R261.9m worth of local shares last week, reducing the net equity outflows in 2016 to R101.16bn.
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