Ninety One identifies buying opportunities in South African equities amid war volatility

Asset manager maintains positive outlook on miners and financials despite Middle East conflict weighing on markets.

Ninety One said the conflict in Iran has created opportunities to purchase South African stocks at prices lower than justified by their earnings outlook, according to Cape Town-based portfolio manager Hannes van den Berg.¹

The $232 billion asset manager remained constructive on South African equities despite the Middle East conflict weighing on economic growth and inflation outlooks, with mining stocks affected by plunging precious-metals prices.¹ Earnings expectations across South Africa's market have remained largely stable, with estimated 12-month forward earnings-per-share for the FTSE JSE All Share Index declining just 4% since the start of the war, according to data compiled by Bloomberg.¹

Van den Berg said several longer-term investment themes continued to support the country's equities, including demand for critical minerals, supply constraints in commodities, and ongoing investment linked to artificial intelligence infrastructure.¹ "There are still strong opportunities in resources, financials, and global growth themes," he said. "Those drivers haven't fundamentally changed."¹

The asset manager remained constructive on miners, along with banks and insurers.¹ It expressed caution on consumer-facing stocks, particularly discretionary retailers.¹