RECOVERY HOPES LIFT JSE

STOCKS on the JSE inched up on Monday on optimism about the prospect of a global economic recovery from the pandemic.

That mood was boosted by the SA health ministry’s announcement of the resumption of a research study into Johnson & Johnson’s Covid-19 vaccine that was paused over very rare cases of blood clots.

The benchmark all share index rose 0.41 percent to end at 67 572.58 points and the blue-chip index of Top40 companies gained 0.39 percent to close on 61 716.82 points.

Aspen Pharmacare, which will be manufacturing the J&J vaccines in the country, jumped 10.11 percent to R162.64. Drugstore chain Clicks Group, which will be among the companies distributing the shot and vaccinating the population, ended up almost 5.94 percent at R254.02.

The rand edged higher early on Monday in thin trade ahead of yesterday’s public holiday, with traders unlikely to take many big bets before key data due later in the week.

At 5.15pm on Monday, the rand was 0.17 percent firmer at R14.26 to the dollar, not far off its close at R14.2875 on Friday in New York.

At 2.25pm yesterday, the rand was weaker at R14.33 to the greenback.

The rand has made solid gains in April, outperforming its emerging market peers, with gains of some 3 percent year-to-date against the dollar, as higher commodity prices cushioned demand for the currency against rising US Treasury yields.

The release of producer price inflation data today will kick off a series of month-end announcements, including national budget and trade figures, which may provide direction for the currency in addition to the US Federal Reserve meeting this week.

The dollar inched up on the day with investors consolidating positions ahead of the Fed meeting.

Bonds firmed, with the yield on the 2030 benchmark issue down 6 basis point to 9.155 percent.