South Africa
Stock investors look to #Budget─── 17:53 Tue, 27 Oct 2020
Any chance that investors will soon be tempted to buy the battered stocks of South Africa’s locally focused companies will be tested on Wednesday when Finance Minister Tito Mboweni presents his medium-term budget.
According to Stanlib, investors will need evidence of real and achievable reforms before they will bet on the plan set out by President Cyril Ramaphosa to revive the economy.
Bloomberg reports that Stanlib said investors will be looking to Mboweni for detail on how the government will tackle its ballooning public-sector wage bill and how it will fund debt-crippled state-owned companies, otherwise South Africa Inc stocks may continue to be shunned, despite enticing valuations.
Foreign investors have accelerated their exit from South African assets in 2020. They are on track to be net sellers of stocks for a fifth consecutive year, with outflows reaching $7.2 billion by October 26.
Moneyweb
