JSE firms ahead of SA’s lockdown
Asian stocks rebounded sharply on Tuesday as the US Fed’s promise of bottomless dollar funding eased painful strain in financial markets
The JSE was firmer on Tuesday after SA government announced that the country will be put on lockdown to help curb the spread of the coronavirus.
Following the severity of the effect of the virus in other countries worldwide, President Cyril Ramaphosa announced on Monday night that people would be confined to their homes from Friday morning, except for essential business, such as buying food or seeking healthcare.
At 11.42am, the JSE all share had firmed 4.88% to 40.133,79 points and the top 40 5.57%. The industrials index was up 4.48%, the resources index 9.55%, banks 0.10%, financials 0.24%, platinum mines 9.06% and gold mining index 7.17%.
Gold had gained 2.53% to $1,591.80/oz and platinum 6.39% to $679.28. Brent crude was up 3.08% to $28.44 a barrel.
“Global equities are edging higher following Monday’s drop as investors weigh optimism that intensifying global lockdown efforts, along with historic stimulus efforts paint a positive outlook for possibly later this year,” Oanda senior market analyst Edward Moya said.
Asian stocks rebounded sharply on Tuesday as the US Federal Reserve’s promise of bottomless dollar funding eased painful strain in financial markets, even if it could not soften the immediate economic hit of the coronavirus, reported Reuters.
Earlier, the Shanghai Composite gained 2.33%, Hong Kong’s Hang Seng 4.46% and Japan’s Nikkei 225 7.13%.
In Europe, the FTSE 100 was up 4.13%, Germany’s DAX 30 5.33% and France’s CAC 40 4.32%.
There is little on the local corporate or economic calendar on Tuesday.
Focus is also on the rating review by Moody's Investors Service, scheduled for Friday.