Markets give nod to GNU

Markets give nod to GNU

The Johannesburg Stock Exchange (JSE) in its morning update showed that the markets are happy with the Government of National Unity (GNU) which includes the Democratic Alliance (DA) leading in some strategic portfolios.

Following President Cyril Ramaphosa’s announcement of the GNU cabinet, the Rand has appreciated reaching R17. 98 against the US Dollar by 9am on Monday, 1 July 2024. Indications are that the Rand may continue to appreciate throughout the week.

The GNU with the DA gives business a sense stability and investor confidence, and the retention of the Finance Minister Enoch Godongwana also gives stability to the South African government and its fiscal policies and is comforting to markets.

The Economic Freedom Fighters (EFF) and uMkhoto weSizwe (MK) Party are repulsive to the markets, with the leftist parties left out of the equation; it presents an opportunity for business and investors to buy into the currency as the government seems to be more stable and favourable towards business.

Journalist

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