Stock surge hints at sentiment turn after election

South Africa’s stock benchmark rallied the most this year, suggesting investors are turning positive on the nation’s equities after the longest daily streak of outflows in three years. The rand and government bonds surged.

Tuesday’s gains follow the reelection of Cyril Ramaphosa as president after the African National Congress agreed on a government alliance with the official opposition Democratic Alliance and smaller parties. Shares also played catch-up with the global rally after a public holiday in South Africa on Monday.