By Colleen Goko
(Bloomberg) – Foreigners offloaded South African stocks at the fastest pace in two years last week, as worries about the state of the global economy helped spur an exit from riskier assets.
Offshore investors were net sellers of R10.7bn ($711m) of the country’s equities in the five days ending Oct. 4, based on figures from Johannesburg stock exchange operator JSE. That’s the heaviest week of outflows since September 2017.
Selling spree
Appetite for South African equities has been hurt by concerns about global growth, the prolonged trade war and a moribund local economy. A forthcoming credit-rating review by Moody’s Investors Service has added to caution among non-resident investors.
South African stocks fell 5.8% in the three months to the end of September, their worst third-quarter performance since 2011. And it’s not just stocks that foreigners are selling: Their ownership of South African government debt dropped to 37% of the total at the end of August, from as high as 43% in March 2018, National Treasury data shows.
