The JSE tracked firmer global markets on Tuesday after the US gave full approval to Pfizer’s Covid-19 vaccine, a milestone that is expected to help bolster the country’s immunisation drive amid a renewed surge in infections driven by the Delta strain.
Talk of US Federal Reserve Chair Jerome delivering a dovish statement on tapering its stimulus measures also bolstered sentiment.
In the US, many large employers, colleges, universities and state and local governments are expected to put vaccine requirements in place now that the vaccine has been approved.
“This [approval of the vaccine] is a positive outcome and could eventually dampen the impact of Covid-19 in the US, which has seen a surge in cases of the Delta variant, resulting in increased pressure on the healthcare sector dominated by unvaccinated people. This would be seen as growth positive for the US,” said Oanda senior market analyst Craig Erlam.
“Stock markets may get another helping hand from the Federal Reserve chair Jerome Powell this week when he appears at the annual Jackson Hole event. Any suggestion from Powell that a taper may not happen this year could give these markets another boost, with it having until recently looked almost guaranteed,” said Erlam.
The JSE all share gained 0.93% to 67,451.54 points and the top 40 added 1.02%. Industrial stocks rose 1.05%, resources 0.93%, banks 1%, precious metals 0.66%, financials 0.83% and industrial metals 0.64%.
Sasol was the best overall performer for the second straight session. The chemicals and synthetic fuel producer gained 6.77% to R223.48 — the most since June.
At 6.18pm, the Dow Jones industrial average was 0.09% firmer at 35,367.12 points.
SA’s unemployment rate rose to a record 34.4% in the second quarter of 2021, up from 32.6% however, the figure does not include effects of the July unrest that hit parts of SA. Tuesday’s data covers the three months to end-June 2021, and the economic effects of the violence and looting that erupted in early July will be reflected only in the third quarter’s jobless data.
“The outlook for the job market remains poor on the back of subdued and uncertain economic conditions,” Nedbank’s economic unit said in a note. “Employment is likely to start edging up in 2022, but the unemployment rate will remain structurally high.”
At 6.46pm, the rand had strengthened 0.8% to R14.9991/$, 0.76% to R17.6149/€ and 0.87% to R20.5741/£. The euro was little changed at $1.1744.
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