The sell-off in South African investment group Old Mutual (OML) continues on Friday with the shares slumping 8.9% to 158.7p following Thursday’s 10.8% decline.
Investors are worried by South Africa’s President Jacob Zuma firing business-friendly finance minister Nhlanhla Nene. The country’s version of George Osborne was kicked out after trying to persuade the president to cut public spending, according to some reports. The relatively unknown David van Rooyen has replaced him.
South African bank Investec (INVP) fell 10.6% to 419.9p on Friday.
RBC downgraded Old Mutual to underperform due to its exposure to the rand. Today around 16 rand buys US$1, up from around 14 rand on Monday.
Nene’s firing came on the same day that Old Mutual Wealth chief distribution officer Mary-Anne McIntyre quit the firm just three months on three months into the role. An ‘evolving management structure’ has been blamed.