CAPITEC: 123,417 +2737 (+2.27%)
South Africa's rand, banking stocks rally as Mboweni named finance minister
* Rand, bank stocks firm more than one percent
* Mboweni appointment soothes markets after uncertainty
(Adds latest figures, analyst quotes)
JOHANNESBURG, Oct 9 (Reuters) - South Africa's rand climbed
to a session best on Tuesday after President Cyril Ramaphosa
appointed former central bank governor Tito Mboweni as finance
minister, a moved that soothed markets after days of
At 1622 GMT the rand was 1.24 percent firmer at
14.6825, a touch softer than the session best of 14.6525 after
Bank stocks rose 1.19 percent, as investors
welcomed Mboweni's appointment that eased a week of uncertainty.
Ramaphosa said he received and accepted Nhlanhla Nene's
resignation as finance minister on Tuesday.
Nene faced calls to resign after he admitted visiting the
Gupta brothers, friends of scandal-plagued former president
Jacob Zuma who have been accused of high-level
influence-peddling, and failing to disclose the meetings
earlier. Zuma and the Guptas have denied any wrongdoing.
Bonds were also firmer, with the yield on the benchmark
paper due in 2026 down 4 basis points 9.22 percent.
"Tito brings strength to the position. He is not afraid to go
up against other ministers and he also understands the
importance of fiscal consolidation which is crucial at this
moment," said Nazmeera Moola of Investec.
Moody's, the last of the top three rating agencies to have
Pretoria's debt at investment grade, is set to release its
latest review on Friday.
In the equities market, the Johannesburg all-share index
and the Top-40 index struggled to hold on to
gains registered immediately after the appointment of Mboweni,
despite the rally by banking stocks.
The All-share inched 0.06 percent lower to 54,187 points and
the blue-chip ended the session 0.15 percent weaker at 47,970
First Rand gained 1.95 percent to 62.09 rand, while
Absa Group rose 1.54 percent to 148.61 rand. Capitec
Bank Holdings firmed 1.44 percent at 991.38 rand.
"The investor community is sad to see Minister Nene go but
they are also very happy to see Tito Mboweni come in because he
is well known and well respected in the investment community,"
FNB Wealth portfolio manager, Wayne McCurrie said.
"The state president has shown that he will act against any
indiscretion that impairs the integrity of his appointees in
cabinet," he said.
(Reporting by Mfuneko Toyana and Nqobile Dludla
Editing by James Macharia)
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