South African Stocks’ Rally Hinges on Beating Earnings Estimates
- Market friendly government, falling rates have helped stocks
- Investors say they have yet to see strong increases in profit
South African stocks need to beat rising earnings expectations to prolong their record-setting rally into 2025. Not all investors are convinced they can.
The main index is up over 7% in dollar terms since a business-friendly unity government was installed in early July, easily outpacing the 0.8% drop for emerging-market peers. There’s been other good news too: eight months without any disruptive rolling power blackouts, while inflation has slipped below the central bank’s target range, supporting the case for easing interest rates.