JSE perks up as virus worries fade

The JSE gained for a second consecutive day on Wednesday as hopes that the spread of the coronavirus will soon peak lifted global market sentiment.

China said on Tuesday the number of new cases reported was at its slowest since January 30, with China’s senior medical adviser saying the spread of the virus could peak this month. The death toll had climbed to more than 1,100 on Wednesday.

“There remains a cloud of uncertainty over how badly the outbreak has impacted China, Asia and the global economy,” said senior research analyst at FXTM Lukman Otunuga.

“With the death toll from the virus topping 1,000, with more than 45,000 confirmed cases, investors are likely to remain wary and cautious despite the apparent ‘risk-on’ mood,” he said.

“The positive vibe from Asian markets may support European shares and potentially trickle back down to Wall Street, which closed at fresh record highs overnight.”

Shortly after the JSE closed, the Dow was up 0.72% to 29,487.27 points, while in Europe the FTSE 100 had added 0.49%, France’s CAC 40 0.73% and the German DAX 30 0.83%.

Earlier, the Shanghai Composite rose 0.87%, Hong Kong’s Hang Seng 0.87% and Japan’s Nikkei 225 0.74%.

The rand had turned negative by Wednesday evening, after Stats SA reported retail sales fell 0.4% year on year in December, from an increase of 2.6% in the previous month. The yearly figure indicates 2019 was the worst for the sector since 2009.

At 6.20pm, the rand had weakened 0.11% to R14.8138/$, was flat at R16.1364/€ and 0.20% softer at R19.2171/£. The euro had lost 0.22% to $1.0894.

The JSE all share gained 1.34% to 57,744.13 points, the top 40 1.56%, resources 2.30% and industrials 0.93%. Among diversified miners, Anglo American gained 4.72% to R413.04, Glencore 2.69% to R46.15 and BHP Group 1.31% to R326.88.

Barloworld earlier reported that its revenue had decreased in the three months to end-December 2019. It said overall equipment sales were down, while automotive trading also fell. Its share price fell 0.22% to R99.76.

DRDGold declared a dividend for the 13th year on Wednesday, while its operating profit jumped 604% to R719.6m in the six months to endDecember 2019. Its share price, however, fell 2.26% to R9.10.