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JSE lifted by US job data

Mar 05 2010 17:36

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Johannesburg - South African stocks ended in the black on Friday tracking US markets which were boosted by better than expected non-farm payrolls data.

By 17:00 the JSE all share index had gained 0.47%, with resources 0.9% firmer, platinum miners added 0.26%, and Gold stocks climbed 0.28% higher. Banks and financials picked up 1.01% and 0.25% respectively, with industrials 0.14% better.

The rand was bid at R7.45 to the dollar, from R7.44 seen at the JSE's close on Thursday. Gold was quoted at $1 135.50 a troy ounce from $1 134.18 at the JSE's last close. Platinum was at $1 581/oz from $1 573.50/oz at the JSE's last close.

A local equities dealer said: "Jobless data in the US came out better than expected. To be honest, markets have looked for any excuse."

He noted that a stronger rand also lifted local stocks.

Dow Jones Newswires reported that US stocks opened higher on Friday as the government's report of fewer job losses in February than expected boosted sentiment.

The Dow Jones Industrial Average was up 52 points, or 0.5%, to 10496, in early trading.

The action came after the Labour Department said non-farm payrolls fell by 36 000 in February compared with a revised 26 000 drop in January. Economists polled by Dow Jones Newswires were expecting payrolls to fall by 75 000 mainly because of the severe weather. The January figure was revised from an originally reported 20 000 decline.

The unemployment rate remained at 9.7% last month. Economists had forecast the jobless rate would edge higher to 9.8%. The better-than-expected jobs data came despite stormy weather on the East Coast last month which the government said may have temporarily hit payrolls and work hours.

"It has some weather distortions in it, but if you look through them you will see some hints that we'll likely see payroll numbers turn positive in the coming months," said Michael Strauss, chief economist and market strategist at Commonfund, an investment manager for non-profitn institutions.

"The surprising thing is the weather impact wasn't greater. As weather normalises a bit in March, we may see some fairly solid labour-market readings."

Still to come are data on consumer credit.

- I-Net Bridge

 
 
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