Avior Capital Markets - SA Investment Strategy | Monthly Wrap April19: Ramaphoria 2.0: SA outperformance

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Avior Capital Markets

Ayan Ghosh

SA Investment Strategy | Monthly Wrap April'19: Ramaphoria 2.0: SA outperformance

Emerging Markets (+2.0%) underperformed the developed world (+3.4%) in April 2019. Yet, MSCI SA (+5.8%) outperformed EM (+2.0%) in April, given expectations of a turnaround with SA national elections scheduled for 8 May, underpinned by the rand (+1.4%), which was the third best performing EM currency in April 2019. From a SA assetallocation perspective, SA equities (Capped SWIX TR +5.0%) outperformed bonds (+0.8%) and cash (+0.6%) in April'19. In Zar, the capped SWIX index rose by 5.0% in April'19 led by SA domestic sectors including Telecoms (+13.1%), General Retail (+10.0%) and Banks (+9.6%) which were among the best performing sectors, while rand-hedges including Miners, Tobacco (-6.8%) and Personal Goods (+0.1%) were among the biggest underperformers. Despite a domestic rally, SA equities continued to see outflows of $2.5bn ytd (-$0.3bn in April) offset marginally by smaller inflows into SA bonds of $0.9bn ytd (SA bond inflows of $0.4bn in April 2019).

03/05/2019 11 EN

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Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Ayan Ghosh

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SA Investment Strategy | Monthly Wrap April'19: Ramaphoria 2.0: SA outperformance

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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