{"id":8457,"date":"2012-03-01T02:45:11","date_gmt":"2012-03-01T00:45:11","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/s-africa-stocks-may-lose-defensive-premium-in-risk-on-rethink\/"},"modified":"2012-03-01T02:45:11","modified_gmt":"2012-03-01T00:45:11","slug":"s-africa-stocks-may-lose-defensive-premium-in-risk-on-rethink","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-stocks-may-lose-defensive-premium-in-risk-on-rethink\/","title":{"rendered":"S.Africa stocks may lose defensive premium in ‘risk on’ rethink"},"content":{"rendered":"

\t\t<\/span><\/p>\n

By Carolyn Cohn<\/span><\/p>\n

<\/span><\/p>\n

LONDON<\/span> Feb 29 (Reuters) – Growing global bullishness
\nmay erode South African stocks’ perceived safe haven status,
\nwhich helped them outperform many emerging markets last year
\ndespite infrastructure bottlenecks, political risk and rand
\nvolatility.<\/p>\n

<\/span><\/p>\n

The shift is already evident in returns with shares in South
\nAfrica’s BRIC peers all romping higher, faster than the 7
\npercent gained by the former this year.<\/p>\n

<\/span><\/p>\n

South Africa’s stocks kept their value in 2011 in local
\ncurrency terms, while fellow members of the political BRICS
\ngrouping — Brazil, Russia, India and China in addition to South
\nAfrica — all fell around 20 percent. Developed market stocks
\n lost nearly 8 percent in dollar terms.<\/p>\n

<\/span><\/p>\n

Still, south Africa’s broader all-share index hit
\nrecord highs last month and is trading within one percent of
\nthose levels, while the more closely-watched Top 40 index index
\n reached three-year highs.<\/p>\n

<\/span><\/p>\n

But, analysts say, many of these gains are due to last
\nyear’s relatively strong performance.<\/p>\n

<\/span><\/p>\n

Investors have attributed South Africa’s defensive appeal to
\nits insulation from major markets and its healthy financial
\nsystem, which have sheltered it from the euro zone debt crisis.<\/p>\n

<\/span><\/p>\n

The country’s core gold mining sector has also gained from
\nheavy safe-haven buying of gold since the 2008 crisis erupted.<\/p>\n

<\/span><\/p>\n

But now investors worldwide have clearly switched into
\nrisk-on mode, hailing stronger U.S. economic data, quantitative
\neasing by the Federal Reserve and the European Central Bank and
\na second bail-out for indebted euro zone member Greece.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Carolyn Cohn LONDON Feb 29 (Reuters) – Growing global bullishness may erode South African stocks’ perceived safe haven status, which helped them outperform many emerging markets last year despite infrastructure bottlenecks, political risk and rand volatility. The shift is already evident in returns with shares in South Africa’s BRIC peers all romping higher, faster […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-8457","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=8457"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8457\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=8457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=8457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=8457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}