Are SA Shares Still Attractive?

While 2020 certainly was the bearer of bad news for markets globally and here at home, there are a number of local stocks that are poised for a positive outlook.

- Schalk Louw

What a year 2020 has been so far. Most news this year was understandably negative, with words like Covid-19, pandemic, lockdown, market correction and economic recession everywhere. Locally, we also had a few bonus words thrown around, like junk status and foreigners as net sellers of local shares and bonds. The question I’d like to address in this issue, considering the fact that foreigners have been net sellers of South African shares for 16 months in a row as at the end of October 2020, is whether or not there are still any buyers of SA shares out there. The short answer is: definitely. In fact, recent news about local companies has been very positive, and that may very well lead to more good news. Let’s look at a few.

Adcock Ingram

In total, 99% of Adcock Ingram’s turnover is generated in Southern Africa. Earlier this year, it bought back 1.5% of its shares. Its largest shareholder, Bidvest, announced on 23 October, however, that it has increased its shareholding in the company to 56.1%.

Afrox

American-German Linde, which owns 50.47% of Afrox, recently announced that it would like to buy the rest of the outstanding shareholding at R21.18 per share, resulting in its delisting.

Barloworld