South African markets rallied as news of the new government of national unity (GNU) was received well. Five political parties have come together to form a government of national unity.
These parties will include the ANC, DA, IFP, GOOD and the PA.
The seamless process saw the rand during the day trade at around R18.06 against the dollar.
Stocks on the JSE also traded in the green with the financials index improving over six percent, with Asset Manager Old Mutual gaining over 10 percent.
Chief Investment Officer at Makwe Fund Managers, Makwe Masilela explains.
“As the momentum continues then stocks will continue to win, so back home we are also getting a boost from the fact that the markets are a better, full reaction to the developments that we’ve been seeing locally since Friday. Remember yesterday was a holiday and other markets were open and they were up. So, I think it’s now that we are fully reacting to what we see on the political front but markets will continue to keep a keen interest on or eye on the developments when it comes to the cabinet formulation. Remember markets are anticipating that the cabinet that will be coming. It will be more that will be driving economic reforms. So markets are acting in anticipation.”
Markets update | 18 June 2024:
