South African fund managers emerged this month as overweight on local equities, with banks and apparel retailers the most preferred stocks while real estate, healthcare, and telecoms topped the rankings among the disliked ones.
Despite the wider preference for local equities, the South African fund managers are worried about subdued corporate earnings per share, noted Bank of America (BofA) Research in its July SA Fund Manager Survey released on Monday.
The survey revealed a net 53% of managers overweight on equities and 20% underweight on cash, showing that “they want to buy” equities.
“Preferred sectors are banks, apparel retail, software and diversified industrials. Disliked: real estate, healthcare, telecoms… food producers, tobacco and life insurance (defensives) gain ground,” said the report.
Nonetheless, for the second month, the fund managers exhibited a…