In uncertain times, investors turn towards defensive stocks such as healthcare, where prospects aren't as dependent on the overall economic cycle as retail shares. However, it's an investment ethos that has recently provided little benefit to South Africa's medical groups. Over the past year, all three of the JSE's listed hospital groups suffered deteriorations in their share price, staining the princely status of these stocks. Netcare declined by 22%, Life Healthcare is down 19% and Mediclinic, the largest hospital group, has seen its shares tumble 25%. In comparison, the All Share has climbed 3.21%%. Analyst at Gryphon investments Casparus Treurnicht explained that under the local economic climate managers have seen limited opportunities locally and healthcare companies have been looking offshore for expansion and growth. Subsequently, healthcare services had been hit by the falling pound while the local economy negatively affected medical aid subscriptions. As disposable income d...
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