Back on top after falling to third place last year is the Bank of America Merrill Lynch team directed by Johannesburg-based John Morris, 53. “They were early in recognizing the need to focus on quality, nailing the bottom-up story that others were missing across assets, sectors and stocks,” recalls one client. The analysts’ outlook is mixed. “We continue to favor growth at a reasonable price, beta at a reasonable yield, growth at a reasonable yield, rand hedges and opportunities in Africa’s frontier markets,” says Morris. “We remain cautious on unsecured lending and are selective buyers on consumer stocks.” One example: South Africa’s Shoprite Holdings, which operates supermarkets and other retail outlets across the continent. The company has a “favorable demographic footprint,” he says, and impressive expansion plans. Also recommended: South Africa’s Absa Group, a financial services firm whose pending merger with Barclays Africa Group Holdings is “a game changer,” the crew captain says. The deal is expected to close later this year. — Paul Sweeney |
Economics & Strategy – Southern/Sub-Saharan Africa Equity Strategy: First
