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Johannesburg - The JSE opened slightly higher in holiday-thinned trade on Wednesday, with the strong rand, firmer commodity prices and surprise interest rate increase in China over the weekend dominating trade.
The market may retain a slightly positive tone for the rest of the day, a trader said.
By 09:22 local time the JSE all share index was up 0.12%, with gold miners climbing 1.19% and resources adding 0.26%. Platinum miners were flat (0.07%). Financials lost 0.12% and banks shed 0.17%, while industrials were flat (0.08%).
The rand was bid at R6.68 to the dollar from R6.65 at the JSE's close on Tuesday. Gold was quoted at $1 407.84 a troy ounce from $1 400.83/oz at the JSE's previous close, while platinum was at $1 753.50/oz from $1 750.00/oz before.
With the UK market opening today after being closed for two days, the local market may see volumes pick up a bit, the trader said.
The trader said the rand was very strong, weighing on resources counters. But firmer commodity prices offset the rand's strength.
Dow Jones Newswires reports that Asian stock markets were mostly up in holiday-thinned trade on Wednesday with Tower Australia powering higher on a takeover bid from Dai-ichi Life.
In Sydney, the Chinese interest rate hikes on Saturday hurt resources stocks, with Rio Tinto down 1.3% and BHP Billiton down 1.5%. But those moves don't "seem to be very convincing on the downside," said Ben Potter from IG
Markets, as the declines haven't hurt the broader market.
Given that the London Metals Exchange has been closed since China announced the hikes, it was unclear how the metals market would react to the news. "It will be interesting to see what happens when that reopens," Potter said.
Japan's Nikkei Stock Average was up 0.50%, and in Hong Kong, the Hang Seng was last 1.15% firmer.
European markets for the most part will start mixed on Wednesday as China's actions to relieve its inflationary pressures continue to stir worry about demand. UK markets will start lower, though, catching up with other markets after being closed for two days.
