JPMorgan Sees South African Stocks Extending EM Outperformance

africa south stocks jpmorgan outperformance
Middle East

JPMorgan Sees South African Stocks Extending EM Outperformance

(Bloomberg) -- South African stocks have just closed out their strongest first half in 14 years, and JPMorgan Chase & Co. is among those forecasting further gains for 2021.

The benchmark FTSE/JSE Africa All Share Index climbed 12% in the first six months of the year, the best performance since 2007. That outpaced developing country peers, with MSCI Inc.’s gauge of emerging markets up less than 7%. Johannesburg stocks continue to trade at a discount to the MSCI gauge.

JPMorgan is overweight South African domestic stocks, including banks and general industrial companies, which stand to benefit in a recovery from the pandemic, adding to the tailwinds provided by rallying commodities prices that have boosted stock prices and the local currency.

Check the history on the topic
Vote to feature