South African banks suffer heavy losses following sack of finance minister

The JSE’s banks had R86bn of their market capitalisation wiped out on Friday morning as the market reacted to President Jacob Zuma’s firing of Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas.

Worst hit was FirstRand, whose share price crashed 12% to R43.25 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.

Rand Merchant Holdings fell 7.9% to R56.69, reducing its market cap by R6.9bn.

Barclays Group Africa fell 7.6% to R138.80 from R150.27, cutting its market cap by R9.7bn.

Nedbank fell 6.8% to R242.80 from R260.65, equating to an R8.9bn reduction in market cap.

Capitec fell 5.4% to R755.01 from R798, reducing its market cap by R5bn.

The JSE’s banking index lost 7.7%, falling to 7,017 points from Thursday’s 7,602.

•Text courtesy of Business Day SA. Photo shows dismissed South African Finance Minister Pravin Gordhan.

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