EZA - EZA: Concerns Around The Rand

2024-02-09 03:43:33 ET

Summary

• The JSE and South African markets feature some interesting picks, with Naspers being an example of a company that has a marquis portfolio.
• However, particularly in the financial exposures, there are risks related to the South African Rand, which is a structurally weak currency as the wealthy save their money elsewhere.
• Poor infrastructure, most infamously the electricity utilities, pose a major problem for development as well, limiting investment in the country despite its substantial resources.
• The P/E ratios are pretty low, but dollar denominated yields could continue to fall on FX effects only.

...

For further details see: