Old Mutual Sees Too Much Bad News Priced Into S. African Stocks
- ‘Resilient, adaptive’ companies coping well in weak economy
- OMIG sees ‘phenomenal’ stock-specific opportunities in SA Inc.
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South Africa’s weak economy and poor growth prospects have hidden the “phenomenal” potential for the shares in some locally focused companies to deliver returns for investors, according to Old Mutual Investment Group.
So-called South Africa Inc. stocks have largely missed out on the 40% rebound in Johannesburg’s benchmark index from its March lows, an underperformance that is “not sustainable,” Meryl Pick, who helps oversee OMIG’s 10 billion rand ($533 million) Investors Fund, said during a webinar Wednesday.