South African Fund Managers Lift Mining Exposure to 5-Year High as 93% See Buying Opportunities
Updated
Updated · Reuters · Jun 22
South African Fund Managers Lift Mining Exposure to 5-Year High as 93% See Buying Opportunities
1 articles · Updated · Reuters · Jun 22
Summary
Mining stocks drew the strongest positioning in five years in Bank of America's June 5-11 survey, with a net 93% of 14 South African institutional investors seeing more buying than selling opportunities — the highest share since 2009.
A 29% drop in oil prices from May peaks sharply eased inflation worries, flipping sentiment from last month’s net 75% expecting higher inflation to just net 7%, while economic slowdown expectations fell from 25% to net zero.
Rate expectations stayed hawkish despite that relief: all surveyed managers still expect the South African Reserve Bank to hike in the third quarter, while Deutsche Bank said another 50 basis points remains possible if oil rebounds.
South African bonds and the rand also benefited from the improved outlook, with a net 29% calling 10-year bonds undervalued and Deutsche Bank forecasting USD/ZAR at 16.0 by end-2026 on trade resilience and political stability.