News of Gordhan charges hits banks
Banking Association MD Cas Coovadia ‘fundamentally concerned’ about the timing of the NPA’s decision since Gordhan has just returned from yet another investor roadshow
The big four banks listed on the JSE closed sharply weaker on Tuesday after the announcement by the National Prosecuting Authority (NPA) that Finance Minister Pravin Gordhan is to face fraud charges in court in November. The banking index closed 3.58% lower at 6,928.20, with Nedbank the biggest loser. The index fell 4.6% virtually immediately after the news broke. It later recovered slightly. Banking Association MD Cas Coovadia said he was fundamentally concerned about the timing of the NPA’s decision since Gordhan had just returned from yet another investor roadshow to the US to promote SA and the resilience of the country’s economy. "We have seen an immediate negative impact as a result of the announcement with the drop in the rand and banking index," Coovadia said.
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