The JSE closed firmer on Thursday, ahead of the long weekend, as investor sentiment improved on hopes that the coronavirus pandemic is nearing its peak.
The JSE closed firmer on Thursday, ahead of the long weekend, as investor sentiment improved on hopes that the coronavirus pandemic is nearing its peak.
Some European countries are preparing to ease regulations related to helping curb the spread of Covid-19, though uncertainty over the economic effects the virus has had, and the chance of a second wave of infections, persists.
Wuhan, the Chinese city where the coronavirus first emerged late last year, ended its more than two-month lockdown on Wednesday.
However, many officials across the world remain nervous about the pace of infections and deaths, reported Reuters.
“If [China] successfully avoids a second wave, there’s hope for the rest of the world,” said BK Asset Management MD for foreign exchange strategy Kathy Lien in a note.
“But if the number of cases surge, forcing parts of the country back into lockdown, then it would be safe to assume that a restart of the US economy will be delayed as well.”
By the close, the JSE all share was 2.83% higher at 48,011.56 points and the top 40 gained 2.49%.
The banking index jumped 7.15%, financials 5.6%, platinums 4.57% and gold miners 7.69%.
Opec and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the US, that could curb global oil supply by 20%.
At 7.30pm on Monday, Brent crude was 0.57% firmer at $31.98 a barrel.
The rand has now regained almost all its losses in April after it reached a record low of R19.34/$. By 5.53pm on Monday, it had strengthened 1.55% to R17.9065/$, 0.81% to R19.5855/€ and 0.96% to R22.3097/£. The euro was up 0.76% to $1.0938.
The rand is now down 21.77% to the dollar so far in 2020, according to Infront data.
“The rand is holding firm around current levels after gradually making its way towards stronger terrain following its rally on Tuesday. The market remains optimistic that the virus outbreak might be peaking, enhancing risk appetite in support of riskier currencies,” Peregrine Treasury Solutions executive director Bianca Botes said.