South African markets held up decently this week, with the JSE and the rand ending three consecutive weeks of declines. Resources and banks led the charge, with the latter boosted by optimism that Finance Minister Pravin Gordhan would retain his post even as he braces to appear in court early next month to face fraud charges. Banks, which are closely correlated to the local economy, making them vulnerable if South Africa's credit rating is lowered to sub-investment grade, have been volatile since December last year, when then finance minister Nhlanhla Nene was unexpectedly removed from his post. Analysts have flagged the standoff between Gordhan and the National Prosecuting Authority as one of the potential risks as ratings agencies prepare to review their decisions before the year-end. It is against this backdrop that the midterm budget on Wednesday will be monitored by the markets. "What is usually an economic non-event will be scrutinised to evaluate if sufficient actions are bei...
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