Best Of Daily News – Information on interesting topics.Best Of Daily News – Information on interesting topics.

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    How to detect allergies in your cat

    How to Master Texas Hold ‘em Poker for Beginners: Tips and Strategies

    Ex-Warner Bros. Exec Courtenay Valenti in Talks for Senior Leadership Job at Amazon Studios

    Facebook Twitter Instagram
    • Home
    Facebook Twitter Instagram
    Best Of Daily News – Information on interesting topics.Best Of Daily News – Information on interesting topics.
    • Home
    • Automotive
    • Business
    • CBD
    • Crypto
    • Education
    • Entertainment
    • Fashion
    • Finance
    • Health
    • Home Improvement
    • Law \ Legal
    • News
    • Shopping
    • Sports
    • Technology
    • Travel
    • Get Help
    Best Of Daily News – Information on interesting topics.Best Of Daily News – Information on interesting topics.
    Home»Business»Resilient South African businesses recovered from Covid fast, M&G says

    Resilient South African businesses recovered from Covid fast, M&G says

    By No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    [ad_1]

    The South African unit of M&G Plc., the UK fund manager overseeing more than $390 billion in assets, sees opportunities in investing in the nation’s industrial and financial companies as earnings growth may surprise.

    Some of these companies have recovered faster from Covid than many in the market anticipated, said Kaitlin Byrne, a Cape Town-based equities fund manager at the firm. They offer an alternative for investors to the Johannesburg market’s large resources segment, she said in an interview.

    “People have under-estimated the ability of earnings” to rebound, said Byrne. “Given the valuations we are seeing, it is more difficult deciding which stocks to exclude from our portfolios than finding good ideas.”

    South Africa’s economy is back at the size it was before the pandemic struck, after expanding 1.9% in the three months through March, a potential boost for the financial sector. While the country’s main stock index slipped 10% in the first half, that was a better performance than the benchmark for emerging-market shares, which slumped twice as much.

    Still, there are domestic threats to the outlook for South African stocks, beyond global concerns of a potential recession. Record rolling power blackouts imposed by struggling state-owned utility Eskom Holdings SOC Ltd threaten to disrupt the economic rebound, while the gloomiest consumer mood in decades may curb household spending.

    The Foschini Group Ltd is an example of a company that has bounced back from Covid better than anticipated. Sentiment around the Cape Town-based retailer just after Covid signalled “a very slow trajectory, but earnings came back a lot faster than the market had priced in,” Byrne said. The company swung from a loss to a profit when it reported full-year earnings on June 10.

    In the case of luxury retailer Richemont, down almost 30% in Johannesburg trading this year, the market attached low multiples to its jewellery businesses and weakness in its shares provided an opportunity to acquire “very strong brands at cheap valuations,” she said.

    Mobile phone giant MTN Group Ltd was valued by some purely on its South African operations, with a larger-than-justified discount on its businesses elsewhere because of regulatory and other risks, Byrne said. MTN’s attractiveness was increased by its businesses in Nigeria — its largest market — and Ghana, which are currently growing above 20% annually, she said.

    Banks have outperformed the broader market, with an index for the sector rising more than 5%, as prospects of an economic recovery and higher rates buoy sentiment. M&G’s Equity Fund, managed by Chris Wood and Yusuf Mowlana, includes three banks among its 10 largest holdings, data on the firm’s website show: Standard Bank Group Ltd, Absa Group Ltd and Investec Plc.

    Johannesburg’s benchmark FTSE/JSE Africa All Share Index climbed 1.4% by 11:23 a.m. local time on Monday, poised to snap three days of declines.

    © 2022 Bloomberg

    [ad_2]

    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Could 3D-printed homes be the future of housing?

    Tourism and hospitality 2023 market outlook

    SA mines recorded 49 fatalities in 2022, a record low

    Comments are closed.

    Don't Miss

    How to detect allergies in your cat

    Pet

    Symptoms of allergies in cats can include itchy skin, sneezing, vomiting, and diarrhoea. If you…

    How to Master Texas Hold ‘em Poker for Beginners: Tips and Strategies

    Ex-Warner Bros. Exec Courtenay Valenti in Talks for Senior Leadership Job at Amazon Studios

    Multiple Vacancies for CCG NLUD

    Recent Posts
    • How to detect allergies in your cat April 19, 2023
    • How to Master Texas Hold ‘em Poker for Beginners: Tips and Strategies April 4, 2023
    • Ex-Warner Bros. Exec Courtenay Valenti in Talks for Senior Leadership Job at Amazon Studios February 1, 2023
    • Multiple Vacancies for CCG NLUD February 1, 2023
    • Heat score statement road victory in pushing past Cavaliers 100-97 – Twin Cities February 1, 2023
    • 'Dr. Phil' coming to an end after 21 seasons: 'I have been blessed' February 1, 2023
    • Surana & Surana International Attorneys February 1, 2023
    Archives
    • April 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • June 2021
    © 2022 - Best Of Daily News - All Rights Reserved.
    • Home

    Type above and press Enter to search. Press Esc to cancel.