Analysts believe that South African equities may have further room to run after record-breaking growth on the Johannesburg Stock Exchange (JSE) this week.

So far this year, the all-share index has delivered returns of over 30 percent, driven largely by resources, particularly precious metals.

Another strong contribution came from the Naspers/Prosus stable.

On Wednesday, the JSE closed above 108 600 points, after touching a new intraday high of 109 157.

Head of asset allocation at Alexforbes Mandisa Zavala attributes the recent momentum to both structural and tactical factors aligning to support the rally.

“For a while now, we’ve seen quite a bit of activity coming into South Africa, especially from offshore investors or foreigners in particular. They’ve seen quite an interest in South African equities because they look quite cheap. So, we have been seeing a trend of more foreigners coming into our market. And I think that is also as a result of the global environment being one that is uncertain.”