Index change prompts record outflows from South Africa stocks | Fin24
 
In partnership with
  • Cadre Cover

    The ANC is planning to launch a funeral policy scheme for members and supporters.

  • VBS Collapse

    Ramaphosa has acknowledged South Africans' impatience to see justice done.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Index change prompts record outflows from South Africa stocks

May 29 2019 12:48
Adelaide Changole and Colleen Goko

Foreign investors’ sales of South African stocks jumped to a record as emerging-market index changes by compiler MSCI prompted money managers to adjust their holdings.

Net outflows surged to R13.3bn of South African shares on Tuesday, compared with net purchases of R389m in the previous session, figures from stock exchange operator JSE show.

MSCI added twenty-six China shares, 30 equities from Saudi Arabia and eight Argentine securities to its emerging-market stock benchmarks, at the expense of South African stocks in changes that took effect Tuesday. Net sales of Naspers were the largest Tuesday, at R4.9bn rand. Nedbank, Hypro, Bidvest and FirstRand were also in the top five, the JSE figures show.

“South Africa’s weighting went from 6.34% to 6.05% in the MSCI emerging market index,” said Matete Thulare, an analyst at FirstRand Bank in Johannesburg.

MSCI is the world’s biggest index compiler and its emerging-markets index is the most important for the asset class, with as much as $1.8tl in assets benchmarked to it as of June 2018. South Africa’s main stock index was 0.5% higher as 11:03 am in Johannesburg Wednesday.

south africa  |  stocks
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...