Banks lose R86bn of their market cap in wake of Gordhan’s dismissal

The JSE’s banks had R86bn of their market capitalisation wiped out on Friday morning as the market reacted to President Jacob Zuma’s firing of finance minister Pravin Gordhan and his deputy‚ Mcebisi Jonas.

Worst hit was FirstRand‚ whose share price crashed 12% to R43.25 from Thursday’s close of R49.12‚ equating to a R33bn drop in its market cap.

• WATCH: Reshuffle is 'to improve efficiency and effectiveness' - ZumaPresident Jacob Zuma announced that the cabinet reshuffle aimed to include more women and younger Members of Parliament.  

The next-biggest casualty was Standard Bank‚ with a 9.2% drop to R139.50 from R153.70‚ knocking its market cap by R23bn.

Rand Merchant Holdings fell 7.9% to R56.69‚ reducing its market cap by R6.9bn.

• Rand in free fall in wake of Gordhan’s axingThe rand continued its free fall against major currencies on Friday morning as the nation awoke to the news that Finance Minister Pravin Gordhan had been axed and replaced by former home affairs minister Malusi Gigaba as part of a major Cabinet reshuffle announced at midnight by President Jacob Zuma. 

Barclays Group Africa fell 7.6% to R138.80 from R150.27‚ cutting its market cap by R9.7bn.

Nedbank fell 6.8% to R242.80 from R260.65‚ equating to an R8.9bn reduction in market cap.

• LISTEN: Mantashe 'jittery and uncomfortable' after Cabinet cullingANC secretary-general Gwede Mantashe is unhappy with President Jacob Zuma's Cabinet reshuffle‚ saying the party's top leaders gave no input to the list of replacement Cabinet members. 

Capitec fell 5.4% to R755.01 from R798‚ reducing its market cap by R5bn. The JSE’s banking index lost 7.7%‚ falling to 7‚017 points from Thursday’s 7‚602.