South African Markets Seen Fading After Strong May Rally
- Foreigners, locals losing appetite for country’s assets
- June performance faces hurdles amid global inflation concerns
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South Africa’s rand and bonds gained in May -- but there are signs that the picture is about to darken.
Large bond outflows and waning demand for the debt from domestic investors are putting pressure on the local market, with record fuel prices adding to inflation that’s already close to the central bank’s target range. Aggressive monetary tightening by developed-nation central banks could add to pressure on the rand.