MARKETS WRAP
RAND, BOURSE SCORE GAINS
THE RAND firmed for the third consecutive session yesterday, as reports of medical breakthroughs in the fight against the new coronavirus in China lifted risk appetite.
At 5pm, the rand traded at R14.7633 to the dollar, 0.18 percent firmer than its previous close. However, this was 3 cents softer than at the same time on Tuesday.
“The rand is clearly more concerned with external drivers with positive developments in the coronavirus saga simulating appetite for the local currency,” said Lukman Otunuga, senior research analyst at FXTM.
“If the market mood continues to improve, the rand could trade towards 14.60. However, it is worth keeping in mind that concerns over the coronavirus outbreak remain a major market.”
Media reported that a Chinese university had found a drug to treat people with the virus, while researchers in Britain had made a “significant breakthrough” in finding a vaccine.
In fixed income, the yield on the benchmark bond was down 4 basis points to 7.91 percent.
In the equities market, stocks surged for a second day in a row, helped by improved risk appetite, Sasol and Ascendis Health gains.
The JSE all share index climbed 1.07 percent to 57 426.2 points, while the Top40 index gained 1.16 percent to 51 484.33 points.
The all share index was led higher by struggling health and wellness company Ascendis Health, up 5 percent to R1.05, after it said it expected normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six months to December 31 to either fall by 1 percent or rise by 10 percent.
Petrochemicals group Sasol topped the blue-chip index, up 4.47 percent to R245.50 as oil prices jumped by more than 3 percent yesterday after reports on the coronavirus drug.
Gold stocks took a breather as risk appetite amongst investors led to a decrease in demand for the safe haven asset. Sibanye Gold retreated 1.58 percent to close at R38.58. I Reuters