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UBS rates for Ramaphoria, says a strong ANC victory could trigger a rally for SA assets


The election results in South Africa, which saw the ruling party wins 55-60% of the vote may increase the shares of banks and insurance companies, retailers, locally-oriented industrial enterprises, property companies and telecommunications companies, according to the UBS Group AG.

The victory of this magnitude for the African National Congress in the May 8 poll with & # 39 is the result, according to many, as the strengthening of the hands President Cyril Ramaphosa and his ability to make changes to the foreign investment. An opinion poll published on Monday showed that the ANC can provide 61% support.

UBS last week listed two products on the Johannesburg Stock Exchange, allow investors to position for a new burst of «Ramaphoria» after the election. A strong indicator for the ANC could trigger a rally in South African assets to greater certainty policy expectations, more efficient management of public companies and the improved growth outlook, Aveshen Pillay, Director of Equity Derivatives Sales and Structuring at UBS in Johannesburg, said in an email response to questions.

UBS has listed 20 of the basket of shares correlated to the strength of Rand, including financials, retailers, manufacturers, property and telecommunications. The second of six products based on a group of 10 in the country are concentrated, "South Africa Inc.» shares are predicting benefit most from lower bond yields, a stronger currency and improve growth and consumer sentiment.

While the South African shares look expensive, "there are opportunities in sectors such as financial and property stocks, take advantage of lower bond yields, as well as retailers and food producers to attractive valuations relative to history and exposed to the consumer," said Pillay .

South Africa Test index fell by 0.4% in Johannesburg on Monday, trimming advance this year to 11%.

Here are some of the prevailing South African UBS shares on the eve of elections in detail in April 16 marketing presentation:


Absa Group, Capitec Bank Holdings, FirstRand Ltd., Standard Bank Group Ltd. "Wait a lower yield environment and lower the cost of capital to support the performance of local banks. Banks should also benefit from improved consumer sentiment and growth prospects. clarity of policy may provide additional driver for corporate borrowing and investment. "

UBS schedule


Discovery Ltd., Old Mutual Ltd. and Sanlam Ltd. To benefit from the "environment of lower yields, improved consumer sentiment and strong performance in the market."

Industrial and Telecoms:

Bidvest Group Ltd.; It should benefit from the recovery of public contracts, with the improvement of the logistic support of business growth prospects. Multichoice Group Ltd.; seen the benefits of improving domestic consumer sentiment and growth prospects. Vodacom Group Ltd.; The most susceptible to the South African consumer with attractive valuations.

Retail sector:

Select n Pay Stores Ltd., Shoprite Holdings Ltd., Truworths International Ltd., Mr. Price Group Ltd., Clicks Group Ltd. and Foschini Group Ltd., in order to benefit from improved consumer sentiment and growth prospects; sector de-rating and looking attractive relative to history. "The strong rand should help reduce inflation input and support profitability."

Food manufacturers:

Tiger Brands Ltd., AVI Ltd.; Strong transfer to the local consumer needs to support the sector to improve consumer sentiment. "Wait to see additional benefit from the power of currency and cost reduction."


Re Properties Ltd. harvests and GrowthPoint Properties Ltd. The lower and stronger rand should support the dynamics of price growth in the short term; In the long-term benefit from increased demand for real estate space.

Find everything you need to know about the 2019 national and provincial elections in our government News24 Elections websiteIncluding the latest news and detailed interactive maps for how South Africa voted in the last 3 elections.

, Elections 2019

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