Markets are not expected to react too negatively if the
election results are delayed by a sample vote audit. But the markets are not
expected to respond well to indications that the election result as a whole is
in question, an analyst says.
This follows an announcement by the IEC on Thursday that it
will do an audit of a small sample of votes following allegations of double
voting in some areas, and that this could lead to a delay in the release of the
Stanlib chief economist Kevin Ling told News24 on Thursday
that the market’s reaction to the news was likely to be fairly muted, but this
all depended on the nature of the delay is.
“If the delay is seen as a technical issue, I don’t expect
the markets to react all that much because they’ve already got sight of what
the final result looks like,” he said. Ling added that, as long as the delay is
not expected to change the outcome materially, the market won’t be too concern.
But if the delay brings into question the actual results, or
if a rerun of the election starts to look likely the markets would generally
react negatively, he said.
As long as there is a proper explanation from the IEC over
the delay of the results and an assurance that the entire election is not being
called into question, the market should be calm, he said. - Sarah Evans