Global stocks fuel JSE gains

Johannesburg - The JSE opened stronger on Wednesday, taking its cue from higher global stocks, with one trader saying that resources were contributing to much of the strength in the morning session.

By 09:18 local time, the JSE all share index added 0.41%, with resources 0.65% firmer, platinum miners rising 0.93%, and gold miners picking up 0.65%. Financials rose 0.25%, banks gained 0.22% and industrials gathered 0.23%.

The rand was trading at R6.86 to the dollar, unchanged from the JSE's close on Tuesday. Gold was quoted at $1 375.00 a troy ounce from $1 369.41/oz at the JSE's previous close, while platinum was at $1 844.50/oz from $1 823.70/oz before.

"The local market is tracking international equities," the trader said, adding that mining stocks were also boosting the local bourse. Anglogold Ashanti [JSE:ANG] was the most active stock, due to book building, which was executed this morning.

Retailers, which came under pressure yesterday, were bouncing back, the analyst said.

Dow Jones Newswires reports that Asian stock markets were mostly higher on Wednesday, with many technology shares rising around the region after upbeat results from Apple and International Business Machines (IBM).

Japan's Nikkei Stock Average added 0.36%, Australia's S&P/ASX 200 climbed 0.7% and South Korea's Kospi Composite rose 0.7%. Hong Kong's Hang Seng Index rose 0.88%, while China's Shanghai Composite was up 1.1%.

Dow Jones Industrial Average futures were up eight points in screen trade.

European stocks are set to open higher on Wednesday, following positive US and Asian leads, says Ben Potter at IG Markets.