Bank of America: Gold and South African Rand Strengthen, Bullish on South African Stock Market

格隆汇3月3日｜Bank of America stated that, thanks to rising metal prices and the strengthening of the South African rand, the South African stock market's 12-month winning streak still has further growth potential. The bank's South Africa strategist John Morris noted that the country's market is benefiting from a rare favorable combination of global and domestic factors, especially the rise in metal prices and expectations of a weaker US dollar. "We are in a sweet spot; this combination is uncommon and there is still room for further upside." The FTSE/JSE Africa All Share Index has risen 44% over the past year, with metals and mining stocks leading the gains. The index has risen for 12 consecutive months, marking the longest winning streak since 1995. In February, the index rose 7%, the largest monthly increase in more than two years. Morris stated that the commodity cycle may support the market for the next 12 to 15 months. He also believes that the South African rand is undervalued and may appreciate further, which would help lower bond yields and support banks and other domestic industries.