A sharply weaker rand kept the JSE afloat at lunchtime on Tuesday, handing a fillip to big rand-hedge shares such as Sasol. The local currency was under pressure for the second session running amid mounting concern that Pravin Gordhan could be removed as the finance minister in a Cabinet shuffle. The developments came on Monday after President Jacob Zuma ordered Gordhan and his deputy, Mcebisi Jonas, to return from an overseas investor roadshow. The all share index was up 0.87% to 52,176.90 points, as the resource 10 index and industrials rose 1.61% and 1.01%, respectively. Banks, which are most sensitive to a weaker rand as a result of their close correlation with the broader local economy, held up this time, unlike on Monday when the news first broke. "It could be too costly and too risky for Zuma to dismiss Gordhan, given that such a decision would cause damage to foreign investors’ confidence and more importantly to the economy," said Piotr Matys, emerging markets currency strat...
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