Top asset manager shuns South African stocks

Morningstar has announced its decision to shun South African stocks from its global portfolios, citing relatively weak economic growth that outweighs the attractive valuations. This move comes as the FTSE/JSE All Share Index has declined over 4% in dollar terms this year, marking its first annual drop since 2022. By contrast, Morningstar remains overweight on South African bonds, which offer attractive yields in an emerging-markets context.