Shares of JSE-listed stocks in the hospitality and tourism industries came under pressure on Monday morning, reacting to news SA will be entering level 4 lockdown for the next two weeks.
In early trade, Tsogo Sun Hotels was down 3.7% to R8.33, on track for its worst day in more than a month, while Sun International lost 2.4% to R19.43. Liquor maker Distell extended its 1.38% loss on Friday, falling an additional 1.57% to R165.02 in morning trade on Monday, putting it on track for its worst day in about six weeks.
President Cyril Ramaphosa on Sunday announced SA was entering level 4 lockdown until July 11, confirming the fear of another alcohol ban as SA grapples with a third wave of the pandemic that threatens to be worse than the first two combined.Public school holidays will be brought forward to Wednesday this week and travel to and from Gauteng, the epicentre of the third wave, will be limited to work and commercial purposes only.
Ramaphosa said the Delta variant, first discovered in India, which is spreading across SA, is much more contagious than the previous variant of the coronavirus in SA.