MARKET WRAP: JSE drops due to volatile equity markets

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JSE weakens with global equity markets as retail traders cause havoc on US markets

29 January 2021 - 18:17The JSE retreated along with global equity markets amid ongoing concern about heightened market volatility driven by a retail trading frenzy, even as positive vaccine news boosted optimism about a recovery from the Covid-19 pandemic.

Johnson & Johnson said on Friday its single-dose vaccine was 72% effective against Covid-19 in the US though only 66% effective in Latin America and 57% in SA, where a more contagious variant is largely responsible for a surge in infections. The JSE all share closed 1.2% lower at 62,472 points and the top 40 fell 1.3% to 57,312 points. Naspers, which accounts for about 21% of the top 40’s value, fell 1% to R3,478, while Prosus, its international internet arm, weakened 1.4% to R1,754.40.

At 5.09pm, the rand had firmed 1.1% to R15.04/$, 0.9% to R18.27/€ and 1.1% to R20.64/£. The dollar was moderately weaker against the euro and little changed against the pound as investors weighed positive vaccine news with volatile stock market swings.

 

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