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Johannesburg - The JSE opened stronger across the board on Wednesday, buoyed by rising commodity prices and firm world markets as geopolitical risk aversion receded.
By 09:22 local time, the JSE all share index was up 0.87%, boosted by a 1.09% rise in resources and a 0.91% jump in both the gold and platinum mining indexes.
Industrials advanced 1.07%, banks collected 0.6% and financials were 0.10% firmer.
The rand was trading at R7.12 to the dollar from R7.15 at the JSE's close on Tuesday. Gold was quoted at $1 336.99 a troy ounce from $1 330.68/oz at the JSE's previous close, while platinum was at $1 830.50/oz from $1 804/oz before.
A local trader said risk aversion appeared to be receding, with President Hosni Mubarak's undertaking to relinquish the Egyptian presidency in September.
He added that good US earnings reports, favourable economic news in the form of strong PMI data, not only from SA but elsewhere in the world, and rising commodity prices were all offering support to the JSE. Copper was at a record high and that was also feeding through to other commodities, he added.
"We are looking at good risk appetite coming back into the market - the strong commodity prices are spilling over into commodity shares," he said.
Dow Jones Newswires reports Asian stock markets are pushing higher, with several closed for the lunar new year holiday.
Strong gains on Wall Street and tech and automaker plays were buoying Tokyo. Shares in Sydney were higher, but buying eased somewhat amid nervousness as a severe cyclone headed toward Queensland.
Markets in South Korea, China, Taiwan and Vietnam were closed for the lunar new year holidays this week, while those in Hong Kong were open for a half day.
The Nikkei closed up 1.78% and Hong Kong was up 1.81%.
While the mood remains upbeat, price moves so far on Wednesday indicate some hesitancy.
European bourses are likely to start slightly higher, although lower Wall Street futures could start to weigh on sentiment later.
Optimism is still pervasive, however, as investors shake off concerns about the eurozone and Egypt.
For Wednesday's opening, IG Markets is calling the FTSE up 18 at 5 975, the DAX up 7 at 7 191, and the CAC up 10 at 4 082.
Heino Ruland, strategist at Ruland Research, said the latest unemployment data reinforced his expectation that the eurozone's debt crisis will skirt by Italy.
"The potential risks for the eurozone area are coming down by the day," Ruland said.
City Index market strategist Joshua Raymond said: "Investors continued to buy into heavyweight mining firms on Tuesday to help lift European indices from their lows after copper prices hit another record high."
Investors paid less attention to the political upheaval in Egypt, given diminished worry about oil flows.
Wall Street futures are mixed, after the Dow Jones Industrial Average closed above the 12 000 level for the first time in two-and-a-half years on Tuesday, as bellwether earnings and encouraging manufacturing data overshadowed the unease rippling through the Middle East.
"You see signs of economic strength and recovery balanced against a Middle East story that's unfolding," said Karl Mills, chief investment officer at Jurika Mills & Kiefer. The market may be underestimating the potential consequences of the mounting strains to Egypt's economy, he said. Still, "we think the markets will continue to grind higher unless the situation really
deteriorates", he said.
By 09:22 local time, the JSE all share index was up 0.87%, boosted by a 1.09% rise in resources and a 0.91% jump in both the gold and platinum mining indexes.
Industrials advanced 1.07%, banks collected 0.6% and financials were 0.10% firmer.
The rand was trading at R7.12 to the dollar from R7.15 at the JSE's close on Tuesday. Gold was quoted at $1 336.99 a troy ounce from $1 330.68/oz at the JSE's previous close, while platinum was at $1 830.50/oz from $1 804/oz before.
A local trader said risk aversion appeared to be receding, with President Hosni Mubarak's undertaking to relinquish the Egyptian presidency in September.
He added that good US earnings reports, favourable economic news in the form of strong PMI data, not only from SA but elsewhere in the world, and rising commodity prices were all offering support to the JSE. Copper was at a record high and that was also feeding through to other commodities, he added.
"We are looking at good risk appetite coming back into the market - the strong commodity prices are spilling over into commodity shares," he said.
Dow Jones Newswires reports Asian stock markets are pushing higher, with several closed for the lunar new year holiday.
Strong gains on Wall Street and tech and automaker plays were buoying Tokyo. Shares in Sydney were higher, but buying eased somewhat amid nervousness as a severe cyclone headed toward Queensland.
Markets in South Korea, China, Taiwan and Vietnam were closed for the lunar new year holidays this week, while those in Hong Kong were open for a half day.
The Nikkei closed up 1.78% and Hong Kong was up 1.81%.
While the mood remains upbeat, price moves so far on Wednesday indicate some hesitancy.
European bourses are likely to start slightly higher, although lower Wall Street futures could start to weigh on sentiment later.
Optimism is still pervasive, however, as investors shake off concerns about the eurozone and Egypt.
For Wednesday's opening, IG Markets is calling the FTSE up 18 at 5 975, the DAX up 7 at 7 191, and the CAC up 10 at 4 082.
Heino Ruland, strategist at Ruland Research, said the latest unemployment data reinforced his expectation that the eurozone's debt crisis will skirt by Italy.
"The potential risks for the eurozone area are coming down by the day," Ruland said.
City Index market strategist Joshua Raymond said: "Investors continued to buy into heavyweight mining firms on Tuesday to help lift European indices from their lows after copper prices hit another record high."
Investors paid less attention to the political upheaval in Egypt, given diminished worry about oil flows.
Wall Street futures are mixed, after the Dow Jones Industrial Average closed above the 12 000 level for the first time in two-and-a-half years on Tuesday, as bellwether earnings and encouraging manufacturing data overshadowed the unease rippling through the Middle East.
"You see signs of economic strength and recovery balanced against a Middle East story that's unfolding," said Karl Mills, chief investment officer at Jurika Mills & Kiefer. The market may be underestimating the potential consequences of the mounting strains to Egypt's economy, he said. Still, "we think the markets will continue to grind higher unless the situation really
deteriorates", he said.
