UPDATE 1-South African portfolio inflows plummet in second quarter

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PRETORIA, Sept 25 (Reuters) – Portfolio investments into the South African economy fell sharply in the second quarter, as investor risk aversion towards emerging markets was rising, central bank data showed on Tuesday.

Inward investment into South African bonds and equities shrank to 16.6 billion rand ($1.16 billion) from 89.4 billion rand in the first three months of the year, the Reserve Bank said.

Appetite for bonds was hardest-hit, with non-resident investors cutting their purchases to a net 3.8 billion rand in the second quarter from 46.9 billion rand in the first quarter. Purchases of equities fell to 12.8 billion rand from 42.5 billion rand.

Africa‚Äôs most industrialised economy relies partly on volatile portfolio flows to fund its budget and current account…

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