The longest streak of inflows into South Africa’s equity market in more than two years signals a pickup in foreign demand as investors look for alternatives to US stocks.

Non-residents have been net buyers of shares on the Johannesburg Stock Exchange (JSE) for eight successive days through Wednesday, the longest streak since August 2022, according to JSE data.

The purchases been relatively small, at an average of R376-million a day compared with daily of outflows of more than R1-billion for the whole of the year. But it’s a sign of changing sentiment following nine straight years of outflows, as lacklustre economic growth, a weakening rand and political risks weighed dimmed the market’s allure.

Year-to-date outflows from the $1.1-trillion market through Wednesday amounted to $4.9-billion.

South Africa’s benchmark FTSE/Africa All Share Index has rebounded to hit record highs after plunging more than 9% in the wake of President Donald Trump’s sweeping tariff announcements on April 2. The gauge has gained of 8.8% this year, with miners the biggest contributors as the price of gold surged.

And with the rand also erasing its post-tariff losses to strengthen against the greenback, dollar investors have pocketed a return of 13%, compared with declines for the S&P 500 and the MSCI World Index of developed-nation stocks.

Still, the South African stocks remain cheap compared with developed-nation peers. The benchmark is trading at an estimated forward price-earnings ratio of 14.7, compared with 19.4 for the MSCI World Index.