EDITORIAL: Markets rally to GNU dawn
Investors gave an early thumbs-up to the emerging power-sharing agreement between the ANC, DA and others
The markets gave enthusiastic approval to early — and it must be stressed “early” — efforts at building a workable government of national unity (GNU). At market opening on Tuesday, investors, after the long weekend of political pondering, reinforced a brittle rand, with optimists suggesting the currency could break below R18/$. But there is still much to be ironed out — including divvying up key cabinet positions — before a more authoritative verdict comes in. Raw rhetoric is being hurled from the fringes; it can be a dangerous time.
Still, the JSE has been patiently waiting for a chance to rally around its rump of much-maligned South Africa Inc stocks. Tuesday’s frothy opening might prompt mutterings of a temporary relief rally, especially by the pessimistic punters who hedged the election outcome by chucking capital into offshore stock markets and currencies...
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