A 4% plummet in the rand-dollar exchange rate following news of fraud claims being brought against Finance Minister Pravin Gordhan caused substantial losses in the share prices of banking and financial stocks on the JSE.The all share, however, rose 0.43% to 51,898.80 points and the blue-chip top 40 added 0.62% as rand hedges and mining stocks gained from the rand’s weakness. Resources gained 1.84% and gold miners added 1.32% despite a softer gold price.The currency’s weakness increased the possibility of a downgrade of SA’s sovereign debt rating, affecting investor confidence in the country.At the close of the JSE, the rand had shed 3.87% or 47c against the dollar, sending banking counters 3.58% lower and financials down 1.68%.General retailers and the property index rose 2.09%. Food retailers fell 0.30%.The Dow Jones was down 0.61% at the JSE’s close, the UK’s FTSE 100 was 0.11% lower, the French CAC 40 gave back 0.14% and Germany’s Dax was flat (-0.07%).IG SA senior market analyst...
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