The JSE closed slightly weaker amid mixed global markets as the ongoing battle with the Delta strain of Covid-19 threatens economic recovery and weighs on sentiment.
On Thursday, SA’s daily infection rate rose to 21,500, according to the National Institute of Communicable Diseases, with the country's economic hub Gauteng remaining the worst affected.
“Covid-19 case incidence rate is now twice as high as previous peaks. The Delta strain is both prevalent and severe, as anyone living in Gauteng would attest to,” said RMB market analyst Siobhan Redford.
“The dire situation, particularly in Gauteng, is coming into focus for investors who had initially priced this as a peripheral risk,” Redford added. “The implications of an extended state of emergency for SA’s modest economic trajectory is beginning to mar sentiment and potentially aggravate movements in the markets.”
The JSE all share lost 0.35% to 66,323 points and the top 40 was down 0.3%. Precious metals fell 0.98%, banks 0.48%, financials 0.45%, industrials 0.36% and resources 0.25%.
Despite the weaker close on Friday, the all share was flat for the week. Banks and financials fell 1% and 0.63%, respectively, while listed property and precious metals gained 1.17% and 1.15%.
Globally, investors welcomed upbeat US data showing solid manufacturing expansion and an accelerating recovery for the country’s labour market.
According to the Bureau of Labor Statistics, the US economy added 850,000 jobs in June. The figure is higher than the 706,000 expected by economists surveyed by Dow Jones, CNBC reported, and more than the 583,000 (adjusted from 559,000) jobs added in May.
At 6.15pm, the Dow Jones Industrial Average was 0.3% firmer at 34,736 points. In Europe, the FTSE 100 and France’s CAC 40 were little changed, while Germany’s DAX gained 0.3%.
Earlier, the Shanghai Composite fell 1.95% and Hong Kong’s Hang Seng lost 1.8%, while Japan’s Nikkei 225 rose 0.27%.
At 6.20pm, the rand had strengthened 1.09% to R14.2842/$, by 1.01% to R16.9228/€ and by 0.77% to R19.6972/£. The euro was little changed at $1.1848.
Gold firmed 0.44% to $1,783.52/oz and platinum 0.34% to $1,087.27/oz. Brent crude added 0.57% to $76.04 a barrel.
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