Rand Plunge Makes South Africa a Buy for StanChart, SocGen
- ‘Political noise’ offers opportunity to buy rand: StanChart
- South African bonds trade cheap to fair value: SocGen
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A slump sparked by concern that Finance Minister Pravin Gordhan’s job is on the line has made South African assets a buy, according to Standard Chartered Plc and Societe Generale SA.
For Standard Chartered, which has been looking to build long-rand positions, “this week’s political noise is that opportunity.” South Africa’s weak economic outlook is likely to see the central bank leave interest rates unchanged until the second quarter of 2018. With inflation falling, real rates will stay strong and help attract inflows into the nation’s bonds, the lender said.