Johannesburg - The JSE lifted more than 1% during its
opening session on Friday before easing back‚ as a European Union deal
triggered a global risk-assets rally.
At 09:21 local time‚ the JSE All Share [JSE:J203] index was
up 0.90% at 33‚550.43 points‚ with resources recovering 1.57%‚ gold shares gaining
0.46% while platinum counters added 0.48%.
Financials were up 0.51%‚ banking stocks edged up 0.29% and
industrials were 0.67% in the black.
The rand was firmer at R8.31 to the US dollar‚ from R8.43 at
the JSE’s close on Thursday‚ while gold was quoted at $1 569.95 a troy ounce
from $1 553.25/oz at the JSE’s previous close and platinum recovered to $1
413.70/oz‚ from $1 395.70/oz previously.
“It is a step in the direction. The EU deal will encourage
market players to take more risk. But it remains to be seen how this is going
to be implemented‚” said Francois du Plessis‚ director at Vega Asset
Management.
European stocks opened higher as investors welcomed an
agreement by eurozone leaders for banks to receive aid directly from the
region’s permanent bail-out fund‚ without adding to government debt.
At meetings in Brussels‚ eurozone leaders agreed that the
permanent bail-out fund‚ the European Stability Mechanism‚ would not have
senior creditor status when it takes over the loans granted to Spanish banks‚
Dow Jones Newswires reported.
European Council president Herman van Rompuy said eurozone
banks would be able to directly access the bailout mechanism once a single bank
supervisor was established. They also agreed that implementing additional austerity
may not be a necessary precondition for funds to be disbursed.
A growth pact involving some €120bn in stimulus measures was
agreed‚ which includes a promise of new capital for the European Investment
Bank‚ and measures to speed up and better target as much as €55bn in EU budget
funds.
London’s FTSE 100 index was up 1.68% at 5‚585.42 points.
Asian stocks also rallied on the EU deal‚ with Japan’s
Nikkei ending the session 1.5% higher‚ while Hong Kong’s Hang Seng index shot
up 2.49% by 09:21 SA time.