South African Fund Manager Bets on Undervalued Local Equities for 2026 Rally

The benchmark South African share index surged more than 50% in dollar terms in 2025, driven by rising precious-metals prices. This outperformed European, emerging-market, and U.S. equity gauges. Local government bonds also delivered strong returns, with the ALBI index up 38% as 10-year rand yields fell according to market data.

South Africa's economic landscape, however, remains mixed. The nation has shown signs of improvement after years of corruption and mismanagement, including reduced power outages and stabilizing state-owned logistics operations. A credit upgrade by S&P Global, South Africa's removal from a global money-laundering list, and a strengthening rand all point to a positive trajectory.

Why Non-Resource Stocks Are Attractive

John Biccard argues that non-resource stocks are undervalued when assessed using traditional financial metrics. By projecting future cash flows and discounting them at rates similar to government bond yields, locally focused equities should trade at a premium, Biccard said. He criticized the market's preference for bonds, calling it illogical and suggesting investors should instead look to undervalued equities.