Election posters in Soweto.
Photo by Gallo Images/Fani Mahuntsi
Almost three-quarters of SA-focused fund managers are expecting a rally in domestic equities after the election on 29 May, despite concerns about a possible leftward shift in policy.
That’s the outcome of a recent Bank of America (BofA) survey of 19 fund managers polled between 3 and 9 May on SA’s post-election market prospects. The survey found that though political risks are seen to be rising, 74% of the surveyed fund managers expect domestic stocks to rally after the election.
A net 79% of the fund managers say both equities and bonds are undervalued with the stocks favoured by them being domestic SA-orientated equities, as well as non-resource rand hedges.
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