Take a bet on SA Inc

VALUE: APPEALING STOCKS INCLUDE BANKS, CLICKS, SHOPRITE, NASPERS

- Ciaran Ryan

Election outcome better than most expected, SA equities are underrated.

The JSE All Share index is up more than 7% for the year so far, most of that coming in the last two months as it became clear South Africa would be ruled by a government of national unity (GNU) after the elections in May.

That was a better-than-expected outcome, with most analysts forecasting a roughly 45% vote for the ruling ANC. In the end it got about 40%, pushing it into a GNU with mostly business-friendly parties such as the DA and Inkatha Freedom Party.

That prompted a shift in sentiment towards SA, reflected in the one-and-a-half percentage point rerating in 10-year bonds in recent months, with the JSE All Share index at new highs.

"There hasn't been an easier to time to generate inflation-beating returns," said Anchor Capital CEO Peter Armitage.