From Independent Online
South African stocks edged down 0.6 percent on Monday, declining for the second straight session after nagging concerns about a slowdown in China’s economy prompted investors to take profit in recent top performers such as Discovery Holdings.
Growth in China’s services sector slowed sharply last month to its lowest point since August 2011, a private sector survey showed, adding to signs of slowing momentum in the world’s second-largest economy.
In addition to a potential slowdown in China, a key market for South African resources, investors are also worried that local stock prices are overblown after a record run that has made Johannesburg one of world’s most expensive emerging equity markets.
“Developed market equities are going to outperform South African equities, that’s the way we view it. You could argue that developed market equities are still relatively cheap compared to South African equities,” said Mark Phillips, an analyst at Sanlam Investment’s Multi Manager unit.
Read more at Independent Online