JSE faces firmer Asian markets on Monday amid extended lockdown
Local leisure, travel and hospitality stocks may be under strain as level 4 restrictions remain
12 July 2021 - 07:15
byKarl Gernetzky
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The JSE faces a recovery for Asian markets on Monday morning after volatile sessions last week, with local leisure stocks looking set for additional pressure as SA grapples with a third wave of Covid-19.
President Cyril Ramaphosa announced a two-week extension of SA’s level 4 lockdown on Sunday night, with alcohol set to remain banned until July 26, amid other restrictions.
This could put counters such as Sun International, which has almost halved since the beginning of 2020, under additional strain, though SA’s liquor industry is pursuing a court challenge against the fourth-alcohol prohibition.
Asian markets were buoyant on Monday morning, with many global bourses, including the JSE, recovering strongly on Friday as sentiment recovered.
Global stocks were under pressure last week as concerns mounted over the Delta variant of the disease, with moves by Chinese regulators against tech firms also providing a reason for caution.
The JSE added 1.75% on Friday, after a 2.34% fall on Thursday, which was its worst day in about ten months.
In morning trade on Monday Japan’s Nikkei recovered 2.25%, the Shanghai composite was up 0.93% and the Hang Seng gained 0.67%.
Tencent, which gives direction to the local bourse via the Naspers stable, lost 1.58%.
Gold was down 0.3% at $1,802.64/oz while platinum fell 0.72% to $1,096.01. Brent crude was 0.24% weaker at $75.38 a barrel.
The rand slipped 0.96% to R14.30/$, having gained about 1% on Friday.
The local corporate calendar is bare on Monday, while in economic manufacturing production is expected to have expanded by an annual 46.8% in May 2021, according to a Bloomberg median estimate, down from 87.9% in April. Much of this is expected to be due to base effects, given the severe effects of the pandemic in the same period in 2020.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JSE faces firmer Asian markets on Monday amid extended lockdown
Local leisure, travel and hospitality stocks may be under strain as level 4 restrictions remain
The JSE faces a recovery for Asian markets on Monday morning after volatile sessions last week, with local leisure stocks looking set for additional pressure as SA grapples with a third wave of Covid-19.
President Cyril Ramaphosa announced a two-week extension of SA’s level 4 lockdown on Sunday night, with alcohol set to remain banned until July 26, amid other restrictions.
This could put counters such as Sun International, which has almost halved since the beginning of 2020, under additional strain, though SA’s liquor industry is pursuing a court challenge against the fourth-alcohol prohibition.
Asian markets were buoyant on Monday morning, with many global bourses, including the JSE, recovering strongly on Friday as sentiment recovered.
Global stocks were under pressure last week as concerns mounted over the Delta variant of the disease, with moves by Chinese regulators against tech firms also providing a reason for caution.
The JSE added 1.75% on Friday, after a 2.34% fall on Thursday, which was its worst day in about ten months.
In morning trade on Monday Japan’s Nikkei recovered 2.25%, the Shanghai composite was up 0.93% and the Hang Seng gained 0.67%.
Tencent, which gives direction to the local bourse via the Naspers stable, lost 1.58%.
Gold was down 0.3% at $1,802.64/oz while platinum fell 0.72% to $1,096.01. Brent crude was 0.24% weaker at $75.38 a barrel.
The rand slipped 0.96% to R14.30/$, having gained about 1% on Friday.
The local corporate calendar is bare on Monday, while in economic manufacturing production is expected to have expanded by an annual 46.8% in May 2021, according to a Bloomberg median estimate, down from 87.9% in April. Much of this is expected to be due to base effects, given the severe effects of the pandemic in the same period in 2020.
gernetzkyk@businesslive.co.za
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