Virus vaccine news boosts rand and JSE

JOHANNESBURG – The JSE firmed yesterday on a potential coronavirus (Covid-19) vaccine, with the rand also strengthening and crude oil making a comeback in anticipation of a surge in demand.

By 5pm, the rand was bid 1.01percent firmer at R18.39 against the dollar, and the market closed in good spirits, with the JSE All Share Index up 3.53percent at 51382points, driven by the energy sector.

Brent crude firmed 7.73percent and touched the $35 (R650) a barrel mark for the first time since March, pointing towards the end of major oversupply after weeks of lockdowns, restricted travel and many people working from home.

The stronger Brent crude oil spread across petrochemical companies with Sasol, which has withstood headwinds his year, rising 10.3percent to close at at R85.37.

Lester Davids, a trading desk analyst at Unum Capital, said the oil price surged due partly on expectations that the lifting of lockdown restrictions would see economic activity slowly returning to normality.