Reported 4 months ago
As South Africa’s election results indicate a potential shift towards a coalition government, investors are facing uncertainty over the outcome and its impact on the market. Initially optimistic about the ruling African National Congress securing an alliance, recent data suggests a loss of majority with wider margins. South African assets are expected to remain volatile until clarity on the coalition government emerges, affecting stock indices and bond yields. Despite fluctuations, South Africa’s double-digit bond yields remain attractive to investors amidst a global easing phase. The rand experienced fluctuations but regained momentum with potential coalition talks with the opposition Democratic Alliance. Though the market is currently unstable, external factors support the rand’s resilience.
Source: YAHOO