Much coverage has been devoted to the rand’s swing from R12.32/$ to R13.05/$‚ after Zuma ordered Gordhan to return from an investor road show in London.
Perhaps more alarming is the 42 basis point rise to 8.73% on the yield on government’s benchmark R186 bonds.
According to Trading Economics‚ South African government debt is about $53.8 billion‚ so Zuma’s move has added about $202 million (around R2.6 billion) to the government’s annual interest bill.
Winners in the rapidly sinking rand include synthetic oil producer Sasol whose share price jumped 5.89% to R382.21 on Tuesday.
The JSE’s miners generally benefited from the weaker currency‚ led by African Rainbow Minerals‚ which gained 8.28% to R94.80.
The sale of Naspers’s 36.4% stake in Souq.com to Amazon.com helped its shares rise 3.11% to R2‚305.49 on Tuesday.
Telkom — for reasons that are not clear since it is not a rand hedge — jumped 5.67% to R76.27 on Tuesday.
The funeral of struggle hero Ahmed Kathrada on Wednesday morning is likely to divert attention away from the unfolding drama in South African politics for a few hours. -Tiso Black Star Group/BDLive