JSE trading volumes slow to a dribble ahead of elections
Incentives for foreigners to return to the market are needed before volumes will sustainably pick up again, Casparus Treurnicht says
Nairobi/Johannesburg — Investors are reserving their judgment on SA stocks before Wednesday’s election, if trading volumes are anything to go by. The number of shares changing hands on the JSE has dwindled to the lowest level seen in 2019 when measured on a monthly basis. The quiet trading suggests caution has taken hold before the polls measure support for the ANC and President Cyril Ramaphosa’s efforts to improve economic management and fight corruption. “We will need to see incentives for foreigners coming back to the market before volumes will sustainably pick up again,” said Casparus Treurnicht, a money manager at Gryphon Asset Management. “These incentives are the same ones that local investors might use before rushing back.”
SA’s economy hasn’t grown more than 2% annually since 2013, while business confidence is at a two-year low. Foreigners have voted with their feet, selling a net $2.3bn worth of SA equities in 2019 as of May 3, compared with inflows of $2.5bn by that...
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