Bonds mixed ahead of post-Cabinet media briefing
Rand Merchant Bank analyst John Cairns says the market seems to have accepted that Pravin Gordhan may not be finance minister for much longer
South African bonds were mixed on Thursday morning as politics continued to drive the local market. The rand, which bonds usually track, has recovered some of the losses it made on Monday when President Jacob Zuma recalled Finance Minister Pravin Gordhan from an international investor roadshow, which revived fears of a Cabinet reshuffle. Relief that Zuma had not fired Gordhan on Wednesday night led to the rand trading relatively firmer at R12.9505/$ on Thursday morning. The local currency lost more than 3% on Monday after Zuma recalled Gordhan and his deputy, Mcebisi Jonas. Rand Merchant Bank (RMB) analyst John Cairns said despite the growing consensus that Gordhan would not be finance minister for much longer, the market seemed to have taken this in its stride. Investors will pay close attention to a post-Cabinet media briefing later in the day. The briefing is expected to shed light on what was discussed during the meeting on Wednesday. Investors are looking forward to the outcome...
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