The JSE, rand and bonds were weaker on Friday as markets reacted to fears of a credit rating downgrade after President Jacob Zuma fired Pravin Gordhan as finance minister, who has been replaced with Malusi Gigaba. Gordhan earlier condemned the use of a "mysterious text" masquerading as an intelligence report "that says the two of us [Gordhan and Mcebisi Jonas] are involved in a massive conspiracy to undermine the country. This is not the basis on which you relieve from office a minister of finance and a deputy minister of finance". The JSE all share was 0.39% lower at 52‚056.10 points and the blue-chip top 40 dropped 0.12%. Banks plummeted 6.14% and general retailers 3.90%. Financials shed 3.04% and property 1.38%‚ while the gold index added 3.79% and resources 1.68%. Since foreigners owned almost 40% of the total value of JSE’s listed shares‚ selling by them negatively affected all equity investors‚ including South African pension and provident funds‚ which held the retirement savi...
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