South African Stocks Exchange Posts Worst Run In A Decade
South Africa’s main stocks index fell in the longest losing streak in a decade as foreign investors sold equities after worse-than-estimated U.S. factory data cast doubt on the recovery in the world’s biggest economy.
The benchmark 165-member (JALSH) FTSE/JSE Africa All-Share Index fell for a 10th day, the longest stretch since February 2004, dropping 1 percent to 44,505.01 by 12:04 p.m. in Johannesburg.
At least five stocks fell for every one that gained amid a global equity rout that has wiped about $2.9 trillion from shares this year. The index has decreased 5.5 percent since Jan. 24.
The selloff in Africa’s biggest economy joins emerging markets that were jolted by the start of Federal Reserve tapering last month. Foreign investors sold a net 1.04 billion rand ($93 million) of stocks yesterday, bringing outflows to 1.52 billion rand this year, according to data from the country’s securities exchange.
“There is selling pressure and it is predominantly driven by foreign selling,” Brendon Hubbard, who helps to oversee 380 million rand in equity funds at ClucasGray, said by phone from Johannesburg today. “Stock valuations are not at a really cheap level to tip people back in. Local fund managers are sitting on cash.”
Written by Jaco Visser | Read more at Bloomberg