5 Catalysts That Could Push South African Equities To EM Prices

South African equities have been trading at developed market levels for the last few years, even though they have historically been traded at a discount to emerging markets (SA now commands a 35 percent premium over other EM). The situation isn’t likely to last, and according to Citi equities analyst Richard Schellbach there are five catalysts that could cause it slip back to EM levels.

South African inflation rate down to single digits

The first danger is that South Africa could enter a period of stagflation. After pulling inflation down into single digits, the Rand has started to slide...