Zuma reshuffle knocks foreign investor confidence
Banking, general retailer and property sectors to remain under pressure on further downgrade concerns
Foreign investors are abandoning banking, general retailers and financial shares on the JSE after the ANC national working committee rejected calls for President Jacob Zuma to resign. Zuma replaced former finance minister Pravin Gordhan with Malusi Gigaba in a cabinet reshuffle last Thursday, leading to a downgrade of SA’s debt by S&P Global Ratings on Monday. The banking index ended the day 2.38% weaker on the news, with Barclays Bank (3.99% down) and Nedbank (2.85% off) the hardest hit of the big banks. Capitec lost 4.1%. Among financials Sanlam lost 6.74%. Sanlam and Barclays Africa were both ex-dividend for the day, with a 4% effect on their share prices. The banking index has lost 2.67% so far this week, after losing 10.02% last week. Analysts said the banking, general retailer and property sectors were expected to remain under pressure on further downgrade concerns following S&P’s downgrade on Monday. "A weaker rand causes investors to switch out of local shares like banks, re...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.