Update: not so fast - according to News 24, a recount for the ANC presidency is underway, adding that "NDZ's camp insisted on recount after she lost the vote, they say. That may cause the delay in announcement."
Update: a recount for ANC president is underway, say 3 sources with knowledge. NDZ's camp insisted on recount after she lost the vote, they say. That may cause the delay in announcement. #ANC54 (@AdriaanBasson)
— Team News24 (@TeamNews24) December 18, 2017
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The South African currency and local equities soared on Monday amid investor hopes that pro-reform candidate Cyril Ramaphosa has won a victory in the ruling ANC’s leadership contest. While the South African Rand suffered a bumpy start to the day as it became clear that the vote would go down to the wire, shedding all of its early gains. The ZAR has since soared, enjoying its biggest one-day gain in over two years, as ANC chief whip Jackson Mthembu told journalists he was confident Ramaphosa had a clear majority.
With official results expected shortly, the rand is now over 4% higher on the day, rising as high as 12.56 against the dollar.
The rand's ascent accelerated following Reuters headlines suggesting that Ramaphosa appeared a near-certain winner:
- ANC LEADERSHIP CANDIDATE RAMAPHOSA GRINNING ON STAGE, HUGGING SENIOR ANC OFFICIALS - REUTERS WITNESS
- SOUTH AFRICA'S ANC CHAIRWOMAN SAYS "THE ANNOUNCEMENT WILL BE IN FIVE TO TEN MINUTES"
- ANC LEADERSHIP CANDIDATE DLAMINI-ZUMA SITTING CALMLY ON SEAT - REUTERS WITNESS
- ANC DELEGATES BREAK OUT IN SONG AND DANCE BEFORE EXPECTED LEADERSHIP ANNOUNCEMENT
In addition to the currency, the country’s government bonds also gained, with yields on 10-year debt sliding 21.6 bps to 8.914%. Meanwhile, among stocks, banks were the biggest beneficiaries on South Africa’s equity markets, with the FTSE Johanessburg Stock Exchange index of bank stocks rising 6.6% to the highest level on record.
Readers can watch a live stream of the ANC's 54th national election here.