RAND AND JSE SCORE GAINS

THE RAND rose against the dollar yesterday, boosted by the promise of unlimited dollar funding from the US Federal Reserve (Fed), which helped sentiment globally, even as an impending 21-day lockdown threatened the local economy.

At 5pm, the rand bid at R17.62 to the dollar, 1 cent firmer than at the same time on Monday.

President Cyril Ramaphosa announced on Monday that South Africa would shut down for three weeks from tomorrow in a bid to contain the coronavirus, joining a number of economies around the world taking drastic measures not usually seen in peacetime.

While likely to have huge consequences for an economy that had already tipped into recession in the final quarter of last year, the measures were widely praised as the decisive, harsh action needed to contain the outbreak.

The rand did not react to this announcement, Peregrine Treasury Solutions said in a note. The currency is usually led by global factors, and markets around the world were yesterday benefiting from an uptick in sentiment following the announcement of a package of extraordinary measures from the Fed.

Peregrine said, however, that the rand would likely remain on the back foot.

“The prospects for an already struggling local economy are now even more bleak, as all businesses except for essential services and goods are to be halted,” it said.

On the JSE, the blue chip Top40 index jumped 8.23 percent to 37 550.72 points, while the broader all share index climbed 7.53 percent to 41 149.35 points.

Miners were among the biggest winners on the blue-chip index, with

Sibanye Stillwater up 21.38 percent at R22.54, BHP Global gaining 13.94 percent to R257.89 and Anglo

American Platinum rising 9.98 percent to R612.06.

Meanwhile, most emerging market stocks and currencies bounced, lifted by the Fed’s unusual moves. I Reuters