The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Speculation is rife that the DA and the EFF may have made inroads into a number of municipalities, but it is expected that the ruling party should maintain it’s overwhelming majority which should equate to continuity in policy path.
With this in mind, a key focus would be on the 'free and fair' election process and the social reaction which may occur as a result of municipal changes.
Recently, the changing of Tshwane mayoral candidates by the ANC was met with disdain by the Tshwane public and social unrest in the form of protest, violence and theft resulted. If a large scale event such as the upcoming elections invoke a similar reaction or is broadcast by the media in such a fashion, the recovery we have seen in the rand this year runs the threat of being unwound quite sharply as the negative sentiment is bound to be a deterrent to foreign investment (in the near-term at least) within the country.