Banks reel as Zuma lands R80bn blow
Holders of banking stocks are counting their losses following President Jacob Zuma's sacking of Pravin Gordhan as finance minister in a c abinet shakeup that threatens to unravel any hope of economic recovery. At least R80-billion has been wiped off the value of four major banks - FirstRand, Standard Bank, Barclays Africa and Nedbank - since last Thursday, when Zuma delivered on the long-speculated reshuffle. The sharp retreat in banking and financial services shares on the JSE echoed the market's response to the shock exit of Nhlanhla Nene from the finance ministry post in 2015. The sell-off of bank shares was magnified by S&P Global Ratings' decision to strip South Africa of its investment-grade status on a foreign currency basis following cabinet changes that have drawn stinging criticism from business, unions and civil society groups.The share-price drops affect the value of workers' provident and pension funds, which are invested in these companies. An estimated 36% of local ba...
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