Banking sector stocks are believed to be the most sensitive to market volatility triggered by economic and political uncertainties, and that belief held true when it emerged that President Cyril Ramaphosa may have violated the Constitution in the Phala Phala matter. None of South Africa’s ‘big six’ banks were spared when the Section 89 independent panel report was released last week. Leading the losses on Thursday was Absa, which saw its share price drop by 10.
Banks Index over a month The rand at one point plunged over 4% the same day – trading close to R18 against the US dollar – which saw investors flee from the bank sector, in a move that indicated “investors were going full risk-off”, Gryphon Asset Management research analyst and portfolio manager Casparus Treurnicht tells Moneyweb.