JSE rises on UK vaccine approval

The JSE extended its gains on Wednesday as news that the Covid-19 vaccine will be available in the UK from next week boosted sentiment, marking another step in the global battle against the pandemic.

The vaccine, developed by Pfizer and BioNTech, received an emergency use authorisation.

The UK has ordered enough doses to immunise 20-million of its 67-million population, with the very elderly and those in care homes, and those whose jobs put them at risk of contracting the virus and spreading it to others, the first in line for a shot.

Meanwhile, the US Food and Drug Administration (FDA) is set to meet on December 10 to discuss approval of the Pfizer treatment. For now, the pandemic continues to take its toll, with deaths in Germany hitting a sevenmonth high and hospitalisations rising across the US.

“The key driver for risk appetite remains coronavirus vaccine progress. Investors stayed focused on updates about a handful of vaccine candidates and the start of global shipments as drugmakers submit paperwork for regulatory approvals,” said Oanda senior market analyst Craig Erlam.

Platinum miners and resources led the JSE higher on the day. Anglo American led the gains in its sector, rising 8.68% to R1,228.28, its highest one-day gain since June. Sibanye Stillwater gained 5.28% to R56.80, Northam 5.03% to R187.41 and Impala 4.42% to R170.21.

The JSE all share gained 1.34% to 58,281.98 points and the top 40 1.36%. Platinum miners rose 5.38%, resources 3.57%, SA listed property 1.61%, financials 0.74%, the gold mining index 0.59% and banks 0.42%.

Global stocks retreated after a strong start to December after US Senate majority leader Mitch McConnell rejected a bipartisan proposal for a $908bn stimulus package aimed at breaking the stalemate over new stimulus in the US Congress.

“It is hard to get excited over stocks given the elevated levels and uncertainty over how much stimulus Congress will be able to deliver before the end of the year,” said Erlam. “The likelihood of further restrictive measures in the US over the next couple of months seems high and that could be the tipping point for Congress to act.”

At 5.46pm, the rand had weakened 0.61% to R15.3321/$ and 0.79% to R18.5376/€, while it was flat at R20.4419/£. The euro had gained 0.18% to $1,2093.