JSE to investigate ‘dodgy trades’ around Gordhan axing: report
The Johannesburg Stock Exchange has announce plans to 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, according to a report by BusinessDay.
The exchange is reportedly set to identify activity that might warrant further investigation by the Financial Services Board’s market abuse department, after it appeared that several trades worth millions of rands were made by shorting stocks against Gordhan.
“The news precipitated material moves in the value of numerous listed securities including currency futures. Once the JSE has finalised its review, it will forward its findings to the Financial Services Board,” said director of market regulation Shaun Davies.
Davies declined to say which securities were being investigated, but it is likely that banking stocks will be among them said the report.
The rand weakened by about 2.5 percent ahead of the news, according to Thomson Reuters data, falling further after the recall was confirmed. It was 8% off its high by March 31, further weakened by Zuma’s cabinet reshuffle.
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