Banks listed on the Johannesburg Stock exchange, JSE lost a staggering six and half billion dollars of their market capitalisation early Friday as nervous traders responded to the controversial sacking of Finance Minister by beleaguered Presidedent Jacob Zuma.
Pravin Gordhan and his deputy, Mcebisi Jonas were fired by the president in a widely anticipated cabinet reshuffle around midnight.
FirstRand, the bank hit the most saw its share price crash 12% from Thursday’s close of R49.12, equating to a R33bn drop in its market cap.
The next biggest casualty was Standard Bank, with a 9.2% drop to R139.50 from R153.70, knocking its market cap by R23bn.
The cabinet reshuffle is now seen as further evidence of the unraveling of ruling African National congress after it emerged that the sacking was opposed by the deputy president Cyril Ramaphosa as well as the Secretary General of the ANC.
