SA Equities: Peak pessimism or structural reset?

Over the past 12 months, the impact of loadshedding on corporate profitability has been severe. Although the FTSE/JSE All Share index returned 8.5% over this period, South African sensitive stocks have been extremely weak and now trade at deep discounts to their long term valuation multiples. In the associated quarterly article we explore the impact of loadshedding on corporate costs and revenue, assess if these are permanent or temporal in nature and finally consider their valuation impact.