From Lester Davids at Unum Capital: The economy has continued to show signs of weakness, with conditions continuing to deteriorate as the emerging-market contagion spreads and sentiment towards SA-focused stocks sour. While some shares have broader reach, others remain largely dependent on the fortunes of the SA economy, which has recently slipped into a recession. The ripple effect of this is that some international funds are forced to sell shares, creating additional pressure on prices. Investors have also become unforgiving regarding any company missteps, moving quickly to side-step any potential corporate governance issues: listed property company Resilient has been the subject of concerns by fund and asset managers due to alleged intercompany share dealing, while the EOH share price fell significantly due to "forced selling" and a decline in profit. Another factor influencing small caps’ performance may be the lack of interest from the larger institutional money managers, who c...
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