“I attribute this primarily to renewed interest from foreign funds. Liquidity is improving in both Europe and the United States and attractive risk adjusted returns are being consistently achieved in emerging and frontier markets,” Mlotshwa said. “This has resulted in a greater appetite for risk and therefore renewed allocations for emerging market and frontier funds.”
Mlotshwa said well capitalised stocks would continue to benefit from this trend and warned against reckless political behaviour. “As these players look to increase their exposure, I believe you will see positive trade on our market, barring any irrational political disturbances ahead of elections,” he said.
Data from local securities trading company IH Securities shows that foreign deals on the local bourse rose from 23 percent in 2010 to 36 percent in 2011 and 41 percent in 2012.
Local institutions and individual investors, meanwhile, continue to be hindered by a lack of liquidity, whilst the trend for the majority of institutional investors has shifted to holding on to equity investments for the long-term.
Post published in: Business
Encouraging,this is good,if stock market improves that means even the economy will begin to change which is exactly what we need.