Foreign investors are dumping South African stocks on the JSE at a rapid rate, but just two shares are still holding up the main index from negative territory.
Media and web giant Naspers and luxury goods retailer Richemont are playing their part in keeping the exchange’s benchmark up 0.6% this year, according to Bloomberg.
This is despite foreigners having dumped a net R77bn of local shares. Naspers’ 34% stake in Hong Kong-listed Tencent and Richemont’s Zurich base have helped their shares this year.
Amid the rout in mining shares following Minister Mosebenzi Zwane’s revised BEE rules, an analyst told Bloomberg that now may be a good time to snap up local shares.
Of course, now may be a good time to do so as long as an upturn happens. And amid our current political climate, that is increasingly looking uncertain.
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