New COVID-19 variant sends South African markets tumbling

new covid 19 variant sends south african markets tumbling
new covid 19 variant sends south african markets tumbling

Friday saw South Africa’s currency fall to a new low against the dollar for the first time this year due to the finding of a new coronavirus strain in the country.

In the wake of the travel bans imposed by Britain and other nations on South Africa and its neighbouring countries, hospitality stocks took the brunt of the losses.

Also, the viral variety was deemed by experts to be the most significant one yet discovered because of its alterations.

“Risk-off trade,” analysts at ETM Analytics wrote in a note. “A new COVID-19 version in South Africa might be the Grinch who steals Christmas.”

(Federal Reserve) posture for more aggressive monetary tightening in the months ahead, and the revelation of this new variant…will substantially weaken the ZAR’s ability to resist this broader USD shift.”)

Rand/dollar exchanged hands at 16.2200 around 0725 GMT, down 1.52 percent from its previous close.

The yield on the benchmark 2030 maturity rose by 24.5 basis points to 9.97 percent in the fixed income market.

Scientists in South Africa said on Thursday that they had discovered a new 19 variation with a “quite odd constellation” of mutations that might enable it elude the body’s immune response and increase its transmissibility. They were concerned.

Japan’s Top-40 index (.JTOPI) and the broader all-share index (.JALSH) were both down about 2% in early trading on the stock market on Monday.

In terms of losses, City Lodge Hotels (CLHJ.J) was the worst-performing stock, falling by 20%.

Shares in Sun International (SUIJ.J), the owner of casinos and hotels such as the Sun City Resort, plunged over 14%, while Tsogo Sun Hotels (TGOJ.J) fell more than 11%.

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