Abax raises exposure to South African equities

Way forward: Customers shopping at a Pick n Pay store just outside Johannesburg. Ramaphosa says his new multi-party administration will prioritise economic growth by tackling structural reform, fixing badly run municipalities and cutting red tape. — Reuters

JOHANNESBURG: Asset manager Abax Investments Ltd has increased exposure to South African equities, encouraged by President Cyril Ramaphosa’s economic reform plans, but warned that investors would want to see results before getting too excited.

Since the May 29 election that stripped the African National Congress of its parliamentary majority and forced it to form a coalition with rivals, South Africa’s benchmark index has climbed 2.4% in rand terms, outperforming the 0.2% increase in the MSCI’s Emerging Markets Index.