Distell and hospitality shares jump
The share price for wine and spirit maker Distell had its best day in nearly three months on Wednesday amid speculation that the government may lift the ban on alcohol sales.
The Covid-19 lockdown could be eased to level 2 if the national coronavirus command council accepts a recommendation made by directorsgeneral for the reopening of more sectors of the economy.
President Cyril Ramaphosa could address SA by the end of the week amid pressure to ease restrictions, according to some sources.
Distell’s share price gained 4.69% to R73.28, its best day since May 25 when the government lifted the first ban on alcohol sales. Hospitality and gaming stocks also surged on Wednesday, as the industry has been hard hit by the lockdown due to travel restrictions.
City Lodge jumped 11.6% to R4.69, Sun International 8.63% to R12.33 and Tsogo Sun Hotels 1.67% to R1.83.
The JSE all share rose 0.44% to 57,417.28 points and the top 40 0.56%. Industrials gained 0.84% and platinum miners 2.46%. At 5.33pm, the rand had firmed 0.58% to R17.3728/$, 0.15% to R20.4894/€ and 0.52% to R22.6605/£. The euro added 0.42% to $1.1791. The rand has fallen 2.7% to the dollar over the past 30 days, according to Infront data.
“Given how economic conditions in Africa’s most industrialised economy remain shaky, appetite towards the rand is likely to fall even further,” said FXTM senior research analyst Lukman Otunuga.
The yield on the R2030 government bond rose one basis point to 9.29%. Bond yields move inversely to their prices.
Gold added 1.51% to $1,940.49/oz and platinum 0.57% to $946.34. Brent crude was up 1.51% to $45.18 a barrel.
Global equities have been supported by progress in the search for a Covid-19 vaccine. The US has made a deal with biotech company Moderna for a supply of 100-million doses of its Covid-19 vaccine.
Shortly after the JSE closed, the Dow was up 0.95% to 27,949.79 points. In Europe, the FTSE 100 added 2.04%, France’s CAC 40 0.9% and Germany’s DAX 30 0.86%. Earlier, the Shanghai Composite fell 0.63%, while Hong Kong’s Hang Seng rose 1.42% and Japan’s Nikkei 225 0.41%.