JSE trades lower as new COVID-19 variant is detected in South Africa

The Johannesburg Stock Exchange (JSE) has followed Asian markets – lower in early trade and has lost 2% so far.

Asian markets, especially Japan’s Nikkei and Hong Kong’s Hang Seng, have fallen around 2.5%. This, is mainly due to intensifying COVID-19 concerns, as a new variant of the virus has been detected in South Africa.

This has put pressure on travel and leisure stocks in particular, as new travel restrictions are imposed, with fears of new lockdowns adding fuel to the fire.

The JSE reached a record high on the 17th of November above 71 000 points, but is at 69 000 in mid-morning trade. Travel and leisure stocks on the JSE were particularly hard hit on Friday morning.

Sun International and Tsogo Sun have so far lost 11%  and City Lodge has tumbled by 20%.

However, gold mining stocks are around 3%  higher on the back of a higher gold price, which is back above $1 800 per ounce.