BRIAN KANTOR: Much room exists for SA to further impress investors
The status of SA’s debt has improved but interest rates and the cost of capital remain elevated
The financial markets have welcomed the government of national unity (GNU). The reaction in the bond market has been particularly favourable: the JSE all bond index rose 11.4% between the May election and August 26. The share market has risen 7.1%, while the rand has gained 4% against the dollar and other emerging-market currencies.
Given the importance of equities and bonds held by SA households in unit trusts and pension plans (about R15.2-trillion worth at the end of 2023), which represents 85% of all the assets held by SA households, such market moves have already had a significant effect on the wealth of South Africans...
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