JSE breaches 65 000 level to new high
THE JSE yesterday muscled to a record high, breaching the 65 000 point level buoyed by gains in the mining and retail sectors, despite uncertainty over the country’s vaccination programme, and ahead of President Cyril Ramaphosa’s State of the Nation Address (Sona) on Thursday.
The FTSE/JSE All Share Index (Alsi) had risen by 1.2 percent to 65 059 points by 5pm yesterday, while the Top40 Index was 1.31 percent higher, at an unprecedented 59 647 points.
The mining index advanced 3.45 percent to 59 576 points, while general retailers gained 0.23 percent to 5 348 points.
The Alsi has performed exceptionally this year, reaching unprecedented levels as the markets benefit from the risk-on sentiment induced by the global roll-out of vaccines.
Old Mutual Wealth investment strategist Izaak Odendaal said South African bonds and equities were still cheap relative to global alternatives.
Odendaal said the Alsi had returned 48 percent from late March last year to date, while the rand gained 16 percent over the same period, despite South
Africa’s ratings downgrades.
The government on Sunday announced it had put on hold its vaccination programme earmarked to start tomorrow after trials with the Astrazeneca and Novavax vaccines in South Africa showed substantial diminished efficacy against mild to moderate infections of the 501Y.V2 strain, which was behind the second wave of Covid-19 in the country.
Meanwhile, business yesterday issued a clarion call for Ramaphosa to announce a credible vaccine roll-out strategy and to light the economic road ahead in his Sona.
Organisations also emphasised that the president must not dither in addressing growth constraints and implementing structural reforms amid an economy ravaged by the Covid-19 pandemic.
Business Leadership SA chief executive Busi Mavuso said the business sector needed precise guidance on the vaccine strategy.
“We want a clear roll-out plan that details when vulnerable groups will receive vaccinations,” Mavuso said. “Business now needs that clarity in order to plan around the risks of a third wave which may reach us before a critical mass of vaccinations has been achieved.”
Consulting Engineers South Africa chief executive Chris Campbell said: “No sector will be able to truly thrive until we have achieved what is necessary to vanquish the virus.”
The South African Institution of Civil Engineering called on the government to revitalise the economy by focusing on service delivery.