The JSE was weaker on Monday morning, with leisure-focused stocks under pressure as SA moved back to alert level 4 lockdown.
On Sunday evening, President Cyril Ramaphosa evening announced that SA would be in level 4 lockdown until July 11. This comes as SA grapples with a third wave of the Covid-19 pandemic that threatens to be worse than the first two combined.
“Even though the adjusted level 4 regulations still permit the vast majority of economic activity to continue, some sectors will be hard hit by the latest measures. As has been the case throughout the pandemic, it is the liquor, hospitality and aviation (through the ban on leisure travel to Gauteng) industries that will be impacted the most,” Bureau for Economic Research of Stellenbosch said.
At 10.10am, the JSE all share had lost 0.16% to 66,109.36 points and the top 40 was little changed. Retailers had fallen 1.93%, banks 1.48% and financials 1.31%. Industrial metals gained 0.54%, resources 0.36% and precious metals 0.24%.
Shares of JSE-listed stocks in the hospitality and tourism industries came under pressure. At 10.15am, Tsogo Sun Hotels had fallen 7.53% to R2.70, on track for its worst day in a week, while Sun International lost 5.37% to R18.84.
Liquor maker Distell had lost 1.72% to R164.82, putting it on track for its worst day in about six weeks.
At 9.56am, the rand had weakened 0.70% to R14.2345/$, 0.77% to R16.9957/€ and 1.24% to R19.8244/£. The euro was unchanged at $1.1940.
Gold lost 0.10% to $1,779.28/oz and platinum 0.89% to $1,105.62/oz. Brent crude was 0.58% firmer at $76 a barrel.
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