The JSE was firmer on Tuesday morning though its global peers were mostly lower as caution persisted on concerns that the Delta strain of the Covid-19 virus could yet derail the global economic recovery.
The all share was on track to break a three-day losing streak, with miners showing strong gains. Naspers was headed for a second day of losses after China’s market regulator released draft rules seeking to stop unfair competition in the internet sector.
While the number of local infections of the Delta variant have fallen, the strain remains mainly responsible for outbreaks in parts of Asia, Europe and the US, and concerns remain that it will hamper global economic growth.
“We have seen a little ‘risk-off’ sentiment entering the market overnight as the Delta strain of the Covid virus continues to grab hold of the market,” said TreasuryONE currency strategist Andre Cilliers. “Developments on the international front should be monitored closely as event risk is the primary concern at the moment.”
At 10.10am, the JSE all share had gained 0.79% to 69,366.53 points and the top 40 was up 0.85%. Industrial metals soared 4.38%, resources 3.61% and precious metals 1.55%. Industrials, though, were down 0.90%, banks 0.24% and financials 0.12%.
In Europe, the FTSE 100 was flat, while France’s CAC 40 had eased 0.35% and Germany’s DAX was 0.30% lower.
Earlier, the Shanghai Composite slumped 2%, Hong Kong’s Hang Seng shed 1.85% and Japan’s Nikkei 225 was 0.36% lower.
At 10.15am, the rand had weakened 0.52% to R14.9062/$, 0.57% to R17.55849/€ and 0.40% to R20.57139/£. The euro was unchanged at $1.17796.
Gold gained 0.39% to $1,794.20/oz, while platinum lost 0.32% to $1,022.24. Brent crude fell 0.56% to $69.16 a barrel.
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