Currencies
Rand Gains as Investors Bet Zuma Is Out, DA in For Coalition Government
- Investors are hopeful for a tie-up between ANC, opposition DA
- Rand, bonds and stocks all jump as coalition talks advance
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South African assets are rebounding, fueled by investor hopes that the country will emerge from the next 13 days of coalition talks with a market-friendly government.
The rand surged as much as 1.6% on Monday, its biggest one-day gain since Dec. 14 after the ruling African National Congress failed to secure a majority for the first time in 30 years. South Africa’s dollar bonds were among the top performers in a Bloomberg index of emerging and frontier sovereign Eurobonds, while the FTSE/JSE All Share index ended the day as the second-best performing equity gauge in dollar terms among the 92 indexes monitored by Bloomberg.