SA tipped by US bank giant

Johannesburg - South Africa is a favourite investment destination among emerging markets, largely on account of its good exposure to resources, steady real growth in remuneration and the expenditure relating to the 2010 World Cup soccer tournament. That's according to a Bank of America Merrill Lynch report.


Foreigners have been warming to SA shares in recent months. Net foreign purchases on the JSE in 2009 totalled R75bn - the highest figure yet for any single year. That compares with 2008's net outflow of R54bn. The popularity of South African shares in 2009 was part of an extensive global trend favouring emerging markets.

Share prices in emerging markets climbed by 73% last year. In the same period, the local share market increased by 28.3%, and the rand is 27.2% firmer than it was at the beginning of 2009.

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