JSE tracks weaker as rand rebounds from sharp losses
Developing local political ructions are largely dominating the local share market, with offshore developments playing second fiddle
The JSE slipped on Thursday as the rand recovered from its recent slide, taking shine off the big rand-hedge shares. But the relatively stronger currency played out favourably for banks, whose share values dropped noticeably this week as speculation mounted that Finance Minister Pravin Gordhan could lose his job in Cabinet shuffle. Banks are closely tied to the health of the economy, which analysts warn could be downgraded to subinvestment grade if Gordhan indeed loses his job suddenly. On Monday, President Jacob Zuma ordered Gordhan and his deputy, Mcebisi Jonas, home from an overseas investor trip without providing reasons. "The rand remains a prisoner to short-term uncertainty surrounding Zuma’s potential actions with regard to the finance minister," said Momentum SP Reid Securities analysts.
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