One would think that investors are looking for the exit door when it comes to South Africa and its almost daily political soap opera. But, as Warren Buffet says, there is a time to be greedy when others are fearful.
Despite the Zuma-inspired talk of radical economic transformation, global banking giant HSBC thinks the situation in South Africa will shake itself out and the company says it is overweight on the local equity market.
Bloomberg reports that shares preferred by HSBC analysts have the potential to gain an average of 33 percent, based on the bank’s price targets.
Companies on the HSBC list include construction and engineering company Aveng, Northam Platinum, grocer Woolworths Holdings and media and internet giant Naspers.
If HSBC is right, the best of times for SA could be in sight.
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