Foreign investors were net sellers of local equities to the tune of R6.53bn last week, bringing the tally so far in 2016 to a hefty R102bn. "Foreign interest in SA equities has withered away in view of the slippery slide in the sovereign credit rating over the past few years," Meganomics economist Colen Garrow said. The steady outflows from the local share market comes as the country gears up for the mid-term budget next week that analysts hope will stave off a further ratings downgrade. S&P Global Ratings, which has the country’s foreign currency rating at just one notch above subinvestment grade status, will review its decision on December 2. Net bond outflows amounted to R6.52bn last week, according to the JSE data, bringing down the total bought so far in 2016 to R57.56bn. Garrow said the bond market was slightly different in that SA’s rand-denominated debt was rated by S&P at some two notches above the sovereign and was also known for its high yield relative to developed market...
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