/ 28 June 1999

US FUNDS FAVOUR SA EQUITIES

SOUTH Africa’s equity markets are among the most attractive in emerging markets, according to a poll of US-based investment managers and traders. Low prices for essentially good shares make SA’s markets a better choice than comparatively expensive Latin American stocks, according to some US funds. Recent price hikes in other emerging markets have left SA looking like a good value, adn the sale of 20% of South African Airlines has boosted foreign perceptions of government commitment to privatisation. Recent interest rate cuts have also shown market flexibility and responsiveness to overseas traders, boosting SA’s image.