Financial Mail and Business Day

Metals, banks lead JSE higher

Lindiwe Tsobo Markets Writer

The metals and bank indices lifted the JSE on Monday, while global markets were mixed as investors mulled what is known about the new Omicron Covid-19 variant.

The metals and bank indices lifted the JSE on Monday, while global markets were mixed as investors mulled the information that is known about the Omicron Covid-19 variant.

There were mixed messages about Omicron at the weekend, highlighting that much is still unknown about how severe the variant may prove to be.

Initial data from SA showed that while cases surged, patients needed less medical intervention, while US medical adviser Anthony Fauci said the variant’s severity may be limited. However, the president of US pharmaceutical and biotechnology company Moderna cautioned that there is a “real risk” that existing Covid-19 vaccines will be less effective against Omicron.

Investors are also considering the prospect of the US Federal Reserve accelerating the pace of monetary policy tapering at its December meeting.

“Equities are having a mixed day today as investors assess information about the new variant,” said Oanda senior market analyst Jeffrey Halley.

“Having suffered so greatly in the Delta wave, investors are understandably more cautious, and now are also coming to grips with the reality of the Fed’s taper,” added Halley.

The JSE all share gained 0.3% to 71,016 points and the top 40 0.45%. Industrial metals rose 1.8%, banks 1.61%, resources 1.39%, financials 0.74% and precious metals 0.44%. Anglo American led gains in the industrial metals sector, rising the most in four weeks, up 3.02% to R592.39. BHP Group gained 1.01% to R435.34, African Rainbow Minerals 0.88% to R215.80 and Glencore 0.84% to R75.37.

In the banking sector, Nedbank led the gains among its peers, gaining the most in a week, up 3.3% to R172.76. Absa added 2.61% to R149.26, Standard Bank 1.81% to R135 and FirstRand 1.73% to R58.17.

The rand held steady below the R16 against the dollar level, reaching an intraday best of R15.8253/$. At 6pm, it had strengthened 1.22% to R15.8814/$, 1.63% to R17.8977/€ and 1.08% to R21.0168/£. The euro was 0.37% weaker at $1.1283.

“It is likely that the domestic currency will struggle to make substantial gains into year-end, after it had recently weakened on the rapid travel bans slapped on SA, and today it has only limped somewhat stronger,” said Investec chief economist Annabel Bishop.

Gold lost 0.21% to $1,779.78/oz, while platinum gained 0.23% to $938.50. Brent crude was 1.58% firmer at $71.53 a barrel.

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2021-12-07T08:00:00.0000000Z

2021-12-07T08:00:00.0000000Z

https://tisobg.pressreader.com/article/281560884083578

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