Despite the labor strife, the iShares MSCI South Africa ETF (NYSEArca: EZA) has surged 15.1% over the past 90 days, but that does not mean lost platinum and palladium will not harm the South Africa ETF.
Last week, Moody’s Investors Service warned that ongoing labor strikes could hamper exports while negating the benefits of the weaker rand. The mining industry accounts for 60% of export earnings in South Africa. [Labor Strikes Could Weigh on South Africa ETF]
“While we expect palladium to outperform platinum this year, we believe supply disruptions coupled with stronger demand will bring the platinum price back to the levels last seen in April 2013,” said ETF Securities.
Chart Courtesy: ETF Securities
ETF Trends editorial team contributed to this post.