UPDATE 1-South African stocks in demand after Zuma quits

From Reuters - February 15, 2018

JOHANNESBURG (Reuters) - South African main stock market index jumped nearly 4 percenton Thursday, putting it on track for its biggest one-day gain in more than two years as investors welcomed the resignation Jacob Zuma as president.

Zuma quit late on Wednesday, reluctantly heeding orders by the ruling African National Congress (ANC) to bring an end to a nine-year tenure punctuated by scandals, stagnant economic growth and policy uncertainty.

The blue chip Top-40 index .JTOPI surged 3.6 percent, on course for its biggest one-day gain since September 2015. The broader All-share index .JALSH was up 3.3 percent at 59,317.

The big news is that Zuma has now resigned and that has created a lot of euphoria... South African incorporated, banks, retailers and the like are all looking sharply better as a result, said Independent Securities trader Ryan Woods.

Deputy president Cyril Ramaphosa is expected to replace Zuma as president later on Thursday.

Ramaphosa, a former chairman of Africas biggest telecoms operator MTN Group, is seen by business leaders and investors as well placed to turn around an economy. South Africas GDP is estimated to grow by less than one percent this year.


Continue reading at Reuters »