Markets have welcomed the country’s new National Executive, announced by President Cyril Ramaphosa last night.
The rand strengthened to R18 to the US Dollar when the JSE opened at 9 o’clock this morning after closing at R18.45 to the US Dollar on Friday last week.
The JSE index traded higher, around 80,315 today after the cabinet announcement which also confirmed that Enoch Godongwana would remain as Finance Minister.
Makwe Masilela of Makwe Fund Managers says the new cabinet, which comprises of ministers and deputy ministers from different political parties, has brought market stability after two weeks of uncertainty amid tense negotiations to form a Government of National Unity.
“I think the markets will be looking [whether] the guys [are] implementing what they are supposed to be implementing. That is to make sure that they accelerate the economic reforms. That will be key, and to see whether the guys are able to coordinate well among themselves with no conflict and try to serve their own constituency or their parties, and doing things in such a way that they are preparing themselves for the next election to be able to have a point to prove. So, the markets will be looking at that.”
7th Administration | ‘Overall, markets react positively to new cabinet’: Dawie Roodt
