ON THE MONEY
STUART THEOBALD: Surging investor interest pays immediate dividends
Plunging yields at weekly bond auction will save the government R31m a year in interest
In my column a fortnight ago, I argued that SA asset prices weren’t yet reflecting the probability of a market-friendly outcome to coalition negotiations. All that changed last week when there was a sudden sentiment shift and foreign investors came rushing for SA assets.
The JSE’s top 40 index rallied more than 5% when the market opened after the Youth Day public holiday, making it the world’s best-performing market on the day. The rand strengthened about 3% through the week, so in dollar terms investors got 7% on their SA equities, the biggest week of the year so far, while the MSCI world index returned barely 1%...
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