Published On: Thu, Dec 10th, 2015

JSE reacts to developments in Finance Ministry

jse 2JOHANNESBURG, (CAJ News) – THE Johannesburg Stock Exchange (JSE) expressed concern at the removal of Finance Minister Nhlanhla Nene and the subsequent appointment a new minister to lead the portfolio.

Nene’s removal was among unfavourable local news that left the JSE flat at midday Thursday as banking and financial shares tumbled.

In a statement, the largest stock exchange criticised the timing of the decision President Jacob Zuma made on Wednesday evening.

“It is the JSE’s view that predictable and consistent leadership is needed if we are to address the recent downgrade of the country’s credit rating to near junk status, the patent economic slowdown, unsustainably high unemployment and rising inflation,” JSE stated.

“That leadership needs to be focused on achieving inclusive growth and on providing a stable economic environment for all South African stakeholders. We are thus concerned that the change in leadership at this crucial time should not impact hard earned efforts in this regard.”

JSE said over the last two decades, the South African Reserve Bank and National Treasury had demonstrated strong fiscal prudence and policy certainty which had been important foundations of investor confidence.

“They have made significant structural, monetary and fiscal progress, which has given the South African economy the edge over other global emerging markets.”

The bourse said it played a critical role in South Africa by facilitating both investment into the country and the raising of capital to fund growth.

“To this end, the JSE has worked closely with previous Finance Ministers and we will continue to work with the new Minister and the National Treasury to help South Africa realise the ambitions contained in the National Development Plan. We look forward to hearing the Minister’s plans in this regard.”

David van Rooyen was on Thursday appointed the new Minister of Finance. – CAJ News

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