JSE closes lower following Cabinet reshuffle, amid worsening fiscal situation
The JSE closed weaker on Tuesday, suffering broad-based losses on foreign selling, as President Jacob Zuma’s Cabinet reshuffle failed to inspire confidence in the market ahead of next week’s medium-term budget policy statement. Retailers led the losses, followed by gold shares and banks. Volumes amounted to R15bn by the close — lower than the daily average of R20bn. The rand weakened in response to Zuma’s decision, which included the removal of higher education minister Blade Nzimande and the appointment of state security minister David Mahlobo as energy minister. The immediate market reaction as a result of the Cabinet reshuffle was testament to the degree of uncertainty over political happenings in SA, said Novare Investments manager Francois van der Merwe. "We can expect to see further depreciation of the rand as markets digest the news and consider the deeper implications." Concern about the government’s fiscal position has increased as Zuma appears intent on proceeding with a R...
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