LONDON (ShareCast) - (ShareCast News) - Shares in South African insurer Old Mutual dived after the country's president, Jacob Zuma, fired Finance Minister Pravin Gordhan in a midnight cabinet reshuffle last night, sending the rand and government bonds tumbling.
"Old Mutual led the FTSE 100 fallers ... as markets reacted to developments with concern," said Neil Wilson, senior market analyst at ETX Capital. He added that Investec, another financial stock with deep roots in South Africa, was also down.

"Mondi and Anglo American were also in the top 5 fallers on the FTSE in early trading as the market felt the Gordhan effect," said Wilson, who noted that miners were also off colour due to softer metal prices.

At about 10:51 GMT, sterling was up 0.38% to 16.6239 rand, while the dollar was up 0.69% to 13.3758 rand. Both were off earlier highs against the rand.

Zuma's reshuffle involved eight other ministers. Zuma said in a statement that his midnight action was about a "radical socio-economic transformation".

Gordhan had been replaced by Malusi Gigaba as finance minister. He was previously the Minister of Home Affairs. The new Deputy Finance Minister was now Sfiso Buthelezi, replacing Mcebisi Jonas.

At about 10:51 GMT, shares in FTSE 100-quoted Old Mutual were down 6.22% to 203.4p each. Mondi dropped 2.23% to 1933p, and Anglo American fell 3.37% to 1220p. Investec was down 9.77% to 545p.

The opposition party in South Africa's parliament has said that it will attempt to remove Zuma from office with a vote, and asked for the support of the other main parties.

"We therefore urge all political parties, including members of the ANC, to vote President Jacob Zuma out when [our] motion of no confidence is debated in the National Assembly," said Mmusi Maimane, leader of the Democratic Alliance.

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