South Africa’s 40% Stock Rally Is Missing an Economic Engine

South African markets are riding a wave of optimism that hasn’t been seen in years. Whether that lasts depends on one thing: economic growth.

In interviews with four market participants in Cape Town this month, the general view was that South Africa’s stagnant economy is the main hurdle that will keep stocks from sustaining their heady rally. So far, gains have been propelled by a narrow slice of the economy as mining companies reap the rewards of record gold and silver prices.