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Johannesburg - The JSE was still flat in midday trade on Tuesday, with the market displaying positive undertones, aided by Anglo American [JSE:AGL]. Gold stocks pulled back, slumping more than 2%.
But investors welcomed the news that Anglo had sold its steel assets, dragging the broader index into positive territory, an equity dealer said.
By 12:08 local time the JSE all share index was up 0.09%, with financials adding 0.15% and industrials rising 0.16%. Banks were flat (0.05% up).
Gold miners slid 2.20% and platinum miners lost 1.11%, while resources remained unchanged.
The rand was bid at 6.61 to the dollar from 6.60 at the JSE's close on Monday. Gold was quoted at US$1 406.01 a troy ounce from US$1 420.48/oz at the JSE's previous close, while platinum was at $1 767.00/oz from $1 782.00/oz before.
The equity dealer said the market seemed to gain more confidence about the global economic outlook, with investors reducing their holdings in gold, which is viewed as a safe haven.
Dow Jones Newswires reports that European stocks were mixed early on Tuesday, with London shares sharply higher, as traders recommended that investors exercise caution in markets still uncertain about the outlook for the euro-zone economy.
In London, the FTSE 100 climbed 1.89%.
"Stocks have made a good start to the year, but looking further ahead we remain concerned that the euro-area debt crisis is unresolved," said Investec Securities.
On the data front, the Bank of England was due to publish figures for lending to individuals at 09:30 GMT. At about the same time, the purchasing managers' index for the UK manufacturing sector was also due to be published. Flash estimates for euro-zone inflation are due at 10:00 GMT and, after the European close, the minutes of the latest US Federal Open Market Committee meeting will be released.
Asian stock markets kicked off the year with a healthy start, rising across the board on hopes that the global economic recovery will continue in 2011.
"In the first half of 2011, I expect the US stocks to continue to do well on the economic recovery there, which should bode well for Asian stocks. However, the (US) recovery is expected to be anemic and, once investors see that, there is likely to be a sharp (downward) correction," said Castor Pang, research director at Cinda International in Hong Kong.
Japan's Nikkei Stock Average rose 1.65% and in Hong Kong, the Hang Seng was 0.99% firmer.
