South Africa’s Stocks Rally ‘Not a False Start,’ Says Sanlam

By Janice Kew

Sept. 22 (Bloomberg) -- South African stocks, which have rallied 41 percent since this year’s low on March 3, are likely to rise further, even as the pace may moderate, according to Sanlam Private Investments.

“This is not a false start,” said Alwyn van der Merwe, who helps manage the equivalent of about $4.3 billion as director of investments at the unit of Sanlam Ltd., the largest South African-owned insurer. Even so, the momentum of the FTSE/JSE Africa All Share Index’s rally now depends on companies’ improved earnings outlook, he said.