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Stocks rally on stimulus hopes

Mar 24 2020 18:05
Musa Makoni,

The JSE rallied on Tuesday as global stocks rebounded on the back of hopes that stimulus measures which are being implemented by most governments could cushion the pending economic downturn.

With United States Congress inching closer to passing a stimulus bill which could aid the US economy, investors looked to take a bite at riskier assets.

The surge started in Asia where the Nikkei jumped 7.13%, while the Hang Seng and Shanghai Composite Index closed 4.46% and 2.69% higher.

Strong gains were recorded across all the major indices in Europe while US equity futures hit the 5% limit up band which is permissible before the spot market opens.

US markets extended their gains after the open as optimism remained rife.

The US dollar eased from its highs which gave some reprieve to emerging market currencies such as the rand.

The local unit peaked at a session high of R17.52/$ before it was recorded trading 1.13% firmer at R17.61/$ at 17:00.

jse winners and losers

On the local bourse, Octodec Investments [JSE:OCT] which fell sharply at the close on Monday managed to claw back some of its losses on Tuesday as it jumped 48.24% to close at R7.59.

Constituents of the resources index recorded the bulk of today’s double-digit percentage increases.

Sibanye Stillwater [JSE:SSW] surged 21.38% to close at R22.54, Impala Platinum [JSE:IMP] gained 20.47% to close at R66.86, while BHP Group [JSE:BHP] advanced 13.94% to end the day at R257.89.

Arrowhead Properties [JSE:AHB] rocketed 20.67% to close at R1.81, while Intu Properties [JSE:ITU] gained 19.4% to close at R0.80.

Imperial Logistics [JSE:IPL] rose 15.69% to close at R29.05, while PPC Ltd [JSE:PPC] closed at R1.25 after gaining 20.19%.

Significant gains were also recorded for Sasol [JSE:SOL] which settled at R24.26 after advancing 10.88, as well as Standard Bank [JSE:SBK] which rose 9.63% to close at R97.69.

EPP NV [JSE:EPP] closed as one of the day’s biggest losers after it lost 20.31% to close at R4.63.

Other listed property stocks also struggled on the day as losses were recorded for Hospitality Property Fund B [JSE:HPB] which fell 8.31% to close at R3.20, while Investec Property Fund [JSE:IPF] dropped 8.15% to close at R6.20.

The JSE All-Share index eventually closed 7.53% firmer while the JSE Top-40 index gained 8.23%.

The Resources index jumped 13.53%, while the Industrials and Financials indices advanced 5.29% and 7% respectively.

jse  |  johannesburg stock exchange  |  currencies  |  markets  |  rand


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