Nicola Mawson
JSE Group CEO Dr Leila Fourie is cautiously optimistic over South Africas economic and political future following the formation of the Government of National Unity (GNU) in mid-June and expects that investment demand to start increasing as sentiment improves.
Speaking during PSGs latest Think Big episode yesterday, Fourie said the new government was much more business friendly because its focused on getting the economy growing across key areas such as electricity, logistics.
Improved demand for investment from both local and international depositors would also lead to companies seeking to raise more capital.
The JSE, she said, was outperforming emerging markets and both the top 40 and the and All Share indices are up following the formation of the GNU. Fourie added that South African stocks are undervalued, especially considering positive dividend yields and price to earnings ratios, due to a historically low level of confidence.
