JSE jumps on Zuma exit, as market takes positive view on economic prospects
The JSE was sharply higher at the opening on Thursday with broad-based gains, ranging from banks to miners, following the overnight resignation of Jacob Zuma as head of state.Market focus shifted to the expected inauguration of ANC president Cyril Ramaphosa as president later in the day. Ramaphosa is set to deliver the delayed state of the nation address on Friday, with the budget scheduled for February 21.Despite some analysts warning that the economy will not improve overnight under Ramaphosa’s leadership, undoing Zuma’s disastrous economic record, others believe short-term benefits might soon become evident."Should the state of the nation address and the budget speech go down without too much criticism, one can almost assume that Moody’s will hold off from downgrading SA’s credit rating for the time being," said Peregrine Treasury Solutions analyst Bianca Botes.The rand firmed to a two-and-a-half year high of R11.6559 to the dollar after the announcement, and was at R11.66 at the...
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