* Foreign bond flows double last year
* Strikes hit mining shares
* Bonds yielding more than equities
* Foreigners keen on retail stocks
By Stella Mapenzauswa
JOHANNESBURG, Oct 15 (Reuters) – South African government
bonds could soon lose some steam after a strong run propelled by
portfolio flows from foreign accounts undeterred by strikes that
have raised questions about the wisdom of investing in the
country.
Investors are increasingly uneasy over often violent
protests that have killed more than 50 people, including 34
striking miners shot dead by police in August.
The ‘sugar rush’ from inclusion in a major global bond index
earlier this month, though now ebbing, has helped push portfolio
flows to a net 82 billion rand ($9.5 billion) into bonds in the
year to date, nearly double the 42 billion rand of net purchases
made during the whole of 2011.
By contrast, foreigners have spurned equities, continuing a
trend from 2011 as risks from a weak domestic and global
economic outlook offset the lure of high returns on the bourse.
Continued…
