JSE leaps 7.5% ahead of lockdown

The JSE closed firmer on Tuesday, taking the lead from its positive global counterparts, as most countries go into lockdown to help curb the spread of the coronavirus.

President Cyril Ramaphosa announced on Monday night that people should stay and/or work at home from Friday morning, except for conducting essential business, such as buying food or seeking health care.

Even though the country lockdown might affect an already struggling economy, it is believed that it will flatten the infection curve, as is the case with China.

China, the epicentre of the coronavirus pandemic, announced an end to travel curbs on Tuesday as governments around the world tighten lockdowns affecting billions of people in a desperate effort to slow the spread of the virus that causes Covid-19, reported Reuters.

The planned easing of restrictions comes as Hubei province reported that new infections dropped to zero on March 19, recording a dramatic plunge from the height of an epidemic that infected more than 80,000 Chinese, with more than 73,000 of them recovered. It killed more than 3,000.

SA, along with Britain and New Zealand, has joined nations in the Middle East, North America, Europe and Asia in declaring lockdowns.

“With China preparing to lift the lockdown in Wuhan and Italy reporting a reduction in the number of new cases and coronavirus-related deaths — it’s still early days, of course — perhaps investors can start to envisage life beyond the coronavirus,” said Oanda senior market analyst Craig Erlam. “That could make stocks look a little more attractive, although anyone jumping back in now will need to have nerves of steel.”

The JSE all share firmed 7.53% to 41,149.35 points and the top 40 rose 8.23%. Industrials were up 5.29%, banks 9.05% and financials 6.15%. The platinum index jumped 13.66% and gold miners 13.13%.

Gold had gained 4.41% to $1,620.90/oz and platinum jumped 9.26% to $697.64. Brent crude had lost 0.79% to $27.37 a barrel.

The rand also made a mild recovery on the day and by 6.03pm it had firmed 0.92% to R17.6572/$ and 0.28% to R19.0710/€; it had lost 1.19% to R20.8094/£. The euro was up 0.64% to $1.0797. The rand is down more than 26% against the dollar in 2020.