The JSE started the week on the front foot as optimism across the board lifted hotel stocks, with significant gains in some energy, mining and technology counters supporting the 0.74% gain in the All Share index to 64,129.00 points.
Hotel and gaming stocks City Lodge raced 13.37%, Sun International 8.27%, HCI 7.43% and Tsogo Sun Hotels 6.88% as Covid-19 travel restrictions eased in key markets and South Africa looks set for removal off the UK red list.
Karoooo, owner of one of South Africa’s fastest-growing local tech companies Cartrack, surged 7.51% and Mustek 2.56%, but Prosus dipped 1.11% and Bytes Technology 0.29%. Naspers ended the day flat on R2,467.96 a piece.
Sasol spurted 6.74% as oil boiled over $80 a barrel as investors turned to crude amid a global natural-gas crisis. Bloomberg reports a shortage of gas has sent prices soaring in Europe and Asia to the equivalent of around $180 per barrel of oil. Brent crude was last trading 3.1% higher at $81.70 a barrel.
Other energy counters were mixed, with Montauk gaining 4.07%, while Vivo Energy dipped 3.74% and Renergen 0.97%.
Drug makers Aspen Pharmacare (-5.72%) and Adcock Ingram (-1.26%) were lower on Merck’s announcement about an effective Covid drug, while healthcare stocks Discovery (-4.53%) and Netcare (-2.11%) also bled.
Mining stocks tracked commodity prices higher with Anglogold gaining 5.66%, Northam 4.82% and Exxaro 1.42%. African Rainbow Minerals were 0.25% lower in ex-div trading.
In the currency markets, the rand lost some ground, with the local currency breaking the top band of the day’s range and edging toward the R15.05 mark against the US dollar. “The move in the rand over the last hour of trading is quite surprising given the action in the US dollar, but we’ve seen US equity markets showing risk-off, and that has filtered through to the currency market,” comments TreasuryONE.
The forex trading house expects the sentiment to continue putting pressure on emerging markets currencies in the evening session, with the rand possibly testing R15.10/$ overnight.
Meanwhile JSE data shows international investors bought a net of R2.46bn of local shares last week and sold R10.20bn in bonds.
Market indicators as it 17:00
Currencies
USDZAR 15.0427
EURUSD 1.1622
EURZAR 17.4739
GBPUSD 1.3601
GBPZAR 20.4494
AUDZAR 10.9426
CADZAR 11.9476
CNYZAR 2.3317
ZARJPY 7.3731
CHFZAR 16.2648
USDAOA 597.80
Bonds and equities
R186 7.62%
US 10 Year 1.48%
JSE 0.81%
FTSE -0.01%
S&P 500 -1.46%
Commodities
Gold $1 764.61
Plat $961.52
Plad $1 895.14
Rhod $13 390.00
Irid $4 990.00
Ruth $673.00
Copp $9 267.25
Brent $81.74
Iron Ore 62.5% $115.76
Coal API4 $188.00
Gold ZAR R26 536.56
Plat ZAR R14 459.53
