South Africa’s equity market has once again been ranked the most attractive in the Europe, Middle East and Africa (EEMEA) region by Bank of America Global Research, even as global market conditions deteriorated sharply.
According to a recent Bank of America Global Research’s EEMEA equity strategy report, South Africa retained the top position among its regional peers in April, continuing a trend already evident in March. This is despite a turbulent period for global markets, during which the JSE All Share Index recorded its worst monthly performance since the 2008 global financial crisis.
As reported by BusinessTech, the JSE lost about R3 trillion in value in March as investors shifted into a risk-off stance amid escalating geopolitical tensions, including conflict involving the United States, Israel, and Iran.
Despite this backdrop, Bank of America’s ranking placed South Africa ahead of countries including Hungary, Türkiye, Greece, the United Arab Emirates, Qatar, Poland, and Saudi Arabia.
What underpins the ranking
Bank of America’s assessment is based on a composite scoring model that incorporates several quantitative factors, including valuations, earnings growth, price momentum, dividend strength, and global emerging market fund positioning.
South Africa achieved a weighted average score of 83, significantly ahead of its closest competitors. The bank attributed this outperformance largely to improving dividend strength and favourable valuations relative to historical levels, which have helped to widen the gap between South Africa and other EEMEA markets.
Although the report noted that financial flows into South Africa had been improving prior to the onset of recent geopolitical tensions, it also highlighted that broader global risks remain a key variable influencing investor sentiment. This comes alongside recent investment commitments totalling R889.8 billion announced at the Sixth South Africa Investment Conference, pointing to sustained investor interest in the local market.
Strong representation among top-ranked stocks
South African companies feature prominently in the bank’s stock-level analysis. Twelve South African firms appear among the top 20 equities screened using six key factors, with Northam Platinum, Sibanye Stillwater, and Ninety One occupying the top three positions.
The list reflects a strong weighting towards materials and financial stocks, with companies such as AngloGold Ashanti, Harmony, Investec, and Momentum also featuring prominently.
At the lower end of the rankings, several well-known South African companies – including Capitec, Shoprite, Clicks, Bidvest, and Bid Corp – appear among the bottom-ranked stocks based on the same metrics.
Why Bank of America’s view carries weight
Bank of America is one of the most influential financial institutions globally. It is the second-largest bank in the US and among the largest globally by market capitalisation, with a significant footprint across investment banking, asset management, and global markets.
Its Global Research division is widely followed by institutional investors, fund managers, and policymakers, because its reports combine macro-economic analysis, sector insights, and quantitative modelling to inform capital allocation decisions across global markets.
As a result, its EEMEA rankings can shape investor perceptions and influence portfolio flows into emerging markets such as South Africa.
