Foreign investors dump SA stocks, pivoting to bonds

Key topics:.Foreign investors sell R19.7bn in SA stocks, biggest drop in over a yearBond investments surge as global risk aversion drives portfolio shiftsWeak SA economic growth fuels declining investor sentiment.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here..If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Ntando Thukwana___STEADY_PAYWALL___.Foreign investors sold off South African equities at the fastest pace in more than a year in the fourth quarter of 2024, as they piled into the nation's bonds, leading to smaller portfolio inflows..Portfolio inflows fell 26% to 33.4 billion rand ($1.8 billion) in the quarter, compared with the prior three months, the South African Reserve Bank said in its Quarterly Bulletin published on Thursday. .Non-residents sold as much as 19.7 billion rand of South Africa domestic stocks traded on the Johannesburg Stock Exchange, reversing a purchase of 4.1 billion in the third quarter. .The last time there was a selloff of that magnitude was in the third quarter of 2023, the central bank said in response to Bloomberg questions. That was in contrast with foreigners acquiring debt securities amounting to 53.1 billion rand, compared to 41.4 billion in the prior quarter..The net sales of domestic shares by non-residents was dominated by the selling of stocks in the software and computer services sector and precious metals and mining, the central bank said.."The persistent sell-off in the domestic secondary share market by non-residents reflected continued global risk aversion due to, among other factors, ongoing geopolitical tensions, uncertainty around US tariffs, China's economic slowdown," the central bank said. "The biggest drivers behind foreigners selling indicates a general decline in investor sentiment toward emerging markets and weak domestic economic growth.".Economic growth in South Africa has averaged less than 1% a year for more than a decade..Still, foreigners' net acquisition of debt securities, including proceeds from the government's two international bond issuances of $3.5 billion, outweighed their disposal of equity securities, the central bank said..For the full 2024 year, portfolio investment liabilities switched to an inflow of 6.9 billion rand, up from an outflow of 99.3 billion rand in 2023..More highlights.Fourth quarter South African household debt edges down to 62% of disposable income compared with 62.4% in the prior three months.South Africa attracts foreign direct investment inflows of 7.5 billion rand in fourth quarter versus an outflow of 3.2 billion rand in the third quarter.Growth in the country's nominal unit labor costs slowed to 1.3% in the third quarter from a 3.5% rise in the previous period..Read also:.🔒 Behind the Fed's move to keep government debt – Bill DudleyNo Quality Street chocolates this time! – David Melvill🔒 The dollar still standing despite growing doubts – Daniel Moss.© 2025 Bloomberg L.P.

Foreign investors dump SA stocks, pivoting to bonds

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