WATCH: Stock pick — South African banks

Robert Towell from Sasfin Securities chose South African Banks as his stock pick of the day.

He says that investors should stay relatively defensive due to “our very volatile market”.

“The South African banks (if we do see some recovery) had a good day on Tuesday and they’re not overly expensive. Absa is probably on single digit PE [price-earnings ratio] and Standard Bank and FirstRand are at around 11 or 12 PEs, also not overly expensive…. This could be quite defensive, paying good dividend, so this is something that you can add to your portfolio if you don’t have or if you’ve got a very small amount you could add those to your portfolio.”