S/Africa's bourse to review trades around Gordhan's recall
South Africa's bourse will investigate an increase in the trading of
certain securities in the hours before former finance minister Pravin
Gordhan was recalled from an international investor roadshow.
On March 27, news broke that President Jacob Zuma had ordered Gordhan
to return immediately from a trip to Britain and the United States.
Gordhan was later dismissed in a cabinet reshuffle.
Reports in South Africa say the Johannesburg Securities Exchange was
examining trading in securities that were affected by news of the
recall.
Officials at the exchange would not initially confirm or deny the report when contacted by Reuters.
The report said that the exchange would seek to identify activity that
might warrant further investigation by the Financial Services Board’s
market abuse department.
"The news precipitated material moves in the value of numerous listed
securities including currency futures," the exchange's director of
market regulation Shaun Davies is quoted as saying by the paper.
Davies declined to say which securities were being investigated, but it
is likely that banking stocks will be among them, the BusinessDay said.
The rand weakened by about 2.5 percent ahead of the news, according to
Thomson Reuters data, falling further after the recall was confirmed.
Speculation of large bets on currency futures at around the same time
also surfaced, causing market watchers to speculate the currency was
being "shorted", local media reported.-The Authority
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