News update: Mining stocks decline, JSE down from record high

 News update: Mining stocks decline, JSE down from record high

News update.

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Yesterday saw an easing of stocks after reaching an all time high with the JSE All Share Index (ALSI) breaking through the 69 000 point mark for the first time. The easing resulted in the day ending in the red. The JSE benchmark index rallied more than 1.8 percent to 69 403 points during early trade as rising commodity prices lifted assets.

Since the beginning of 2021 the JSE has performed well, increasing by than 15 percent or 9000 points. February saw the JSE rise for a fourth consecutive month as positive developments in the US stimulus bill and progress in Covid-19 vaccine roll-outs continued to boost investor sentiment. Anchor Capital’s derivatives specialist, Henre Herselman, said the momentum at international level was boosting the local market.

The rand remained stagnant as it rose 0.03 percent to R15 on the mark against the US Dollar by 5pm, reversing earlier gains after peaking at R14.88 as the dollar surged. The dollar index edged higher as Treasury yields increased amid prospects of a strong economic rebound supported by a fiscal stimulus and a faster coronavirus vaccine roll-out. Investors have been gauging the economic recovery, a potential stimulus package and quicker vaccination roll-outs in the US.

Investec economist Annabel Bishop said although the relaxation of the lockdown restrictions on Sunday opened up more economic activity somewhat, the county’s vaccine rollout programme remained a matter of concern.

Bishop said there were indications that the country could suffer a third and even a fourth wave of infections before herd immunity was attained.

She said economic activity would likely be weakened by the interruptions, with a third wave of infections expected in the second quarter.

Chris Louw

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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