Goodbye Zuma, hello growth
|South Africa’s JSE 40 Index will expand more rapidly as President Jacob Zuma steps down, following a 9-year rule marked by corruption, pork-barrelling and incompetence. Successor President Cyril Ramaphosa, former African National Congress (ANC) party leader, is expected to drain the swamp, starting with an address to the nation today.
Investors are looking at a stronger rand (USD/ZAR at 11.58) along with higher equities: the JSE 40 reached 52’565 points (+4.27%), reinforced by Industrials (+10.44%), Consumer Discretionary (+8.01%), Financials (+6.69%) and Health Care (+6.59%). With December 2017 consumer prices up 4.7% annually, inflation is subdued. January 2018 Business Confidence increased to 99.7 from December’s 96.4 – its highest since 31 October 2015. December’s trade balance was ZAR 15.7 billion, suggesting a strong economic recovery.
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