Offshore investors in record sale of South African bonds

Foreign investors sold R34.7 billion ($2.5 billion) worth of South African bonds between January and June, the highest sell-off on record, data from the Johannesburg Stock Exchange showed, driven by a drought of cheap money and a US-China trade spat.

While confidence in South Africa’s growth prospects has improved since Cyril Ramaphosa was elected president in February on a pledge to make policy more investor friendly, global economic conditions have dampened the enthusiasm seen earlier in the year.

The sell off since the start of the year eclipses those seen during the 2008 global financial crisis and the dot-com crash between 2000 and 2001. Over the same period in 2017 the country’s bonds recorded a R45.7 billion inflow.

“There’s been too much cash pumped into emerging markets for…

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