Increase in investor confidence

South African investor confidence is improving, despite high levels of volatility on global markets.

Momentum's Investor Confidence Index ticked up from 60 to 64 points last month, indicating that the country's investors were quite positive.

"Well, 64 is a healthy number," said Brendan Howie, Momentum Manager of Managers deputy chief investment officer.

Relative to other investment destinations, South Africa is looking more attractive, specifically in light of sovereign debt problems in Greece, Portugal and Spain.  

The index combines several important market indicators to give a complete monthly picture.

One of its components is the view global investors have of South Africa, and is measured by total nett foreign exchange purchases.

These could be affected negatively if large institutions slammed the country.

The International Monetary Fund yesterday voiced concern in its 2012 Article IV report about South Africa's growing public wage bill and poor education.

It revised its growth forecast for South Africa down to 2.6% for the year.

The IMF also highlighted South Africa's high labour costs as "problems with external competitiveness".