The South African stock market sees some sigh of relief after a long time, media reports said. The stock exchange surged to its record high this year following drugmaker Pfizer and Germany’s BioNTech successful completion of the Covid-19 vaccine trail.
It is reported that the stock market went frenzy with stocks and rand posting big gains. Africa All Share Index JALSH climbed 1.63 percent after the announcement, while the top 40 companies index JTOP rose 1.56 percent. However, the gold prices went down by 15 percent as a result of the correction. South African banks also recorded good results.
Franco Lorenzani, an independent senior analyst, told the media, “There are hopes for a pre-COVID world and market. Mid to long term prospects for gold is still bullish as there will not be any major change in interest rates till 2022/23 as indicated by the Federal Reserve.”
Rand, South Africa’s local currency also surpassed its eight-month peak after the vaccine trial results. Its value is strengthened after Joe Biden won the presidential election in the US. The rand recorded a 1.25 percent surge compared to a week earlier.
The South African trade market was going strong until the outbreak of the Covid-19 pandemic which has affected global economies and companies. The pandemic prompted worst-ever contraction in South Africa in the second quarter. With that, the government is preparing for an economic rebound and strengthening in the coming months.