Win for Markets Darling in ANC Contest May See Stocks Slump
- South African ruling party about to choose new leader
- Ramaphosa victory could weaken weighty rand-hedge shares
Cyril Ramaphosa
Photographer: Waldo Swiegers/Bloomberg
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In the topsy-turvy world of South African stocks, a triumph for investors’ preferred candidate in the contest to lead the ruling African National Congress could weaken the country’s benchmark index.
The victor, likely to be either Cyril Ramaphosa or Nkosazana Dlamini-Zuma, would need to commit to spending discipline and the rebuilding of key state institutions like the revenue service and the prosecuting body to win over investors, according to John Orford, who helps manage about 600 billion rand ($37 billion) in equities at Old Mutual Investment Group.