South African stocks hit 11-year highs: naspers and banks drive Q3 surge

South African stocks are seeing their strongest third-quarter performance in 11 years, with the FTSE/JSE Africa All Share Index rising 10% over the past three months. Leading the charge are Naspers Ltd., benefiting from Chinese economic stimulus, and banks, which are buoyed by optimism around falling interest rates.

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Analysts remain positive about further growth, driven by the beginning of a global interest rate-cutting cycle and hopes for economic reforms under South Africa’s new coalition government. A recent Bank of America survey revealed that 67% of fund managers view local equities as undervalued. However, some caution persists due to uncertainties around China and concerns over possible market overbought conditions.