Attached are two updated charts on foreign net investment into the SA bond market as well as the equity market. The net foreign buying/selling in previous years have also been included for comparison purposes, as well as the total return in each market for each year (in orange).
Without going into huge detail, foreigners have continued to massively increase their holdings of SA bonds this year, following the record buying in 2010. (The bond market’s performance has generally been heavily influenced by the direction of foreign purchases).
In contrast, foreign investors have been less keen on SA equities this year, and have turned net sellers year-to-date, which is actually fairly unusual. Once again the performance of the equity market is heavily influenced by the direction of foreign equity purchases.
Download the presentation slides