AGAINST logic, rational thinking and economic theory, the devastating looting and “political” unrest in KZN and Gauteng last week had no serious effects on South African Financial markets, for now.
Although the rand came under pressure, losing 50 cents against the US$, to R14.72/$, last Wednesday, the currency started to improve again to close on Friday on R14.48/$.
Foreign investors started to buy South African bonds last Thursday and Friday (after some heavy sales the first half of the week). This after President Cyril Ramaphosa called up the SANDF to support the SAPS in the looting strike areas of KZN and Gauteng.
On the JSE, share prices, against logic, had a bullish first part of the week and especially on Wednesday as the ALSI ended 2.3% higher since the opening last Monday, with resources (+4.0%) and industrial shares (+3.3%) gaining strongly as the weaker rand boosted these shares.
Last Thursday and Friday, as…