JSE higher as commodities rebound

Johannesburg - The JSE opened firmer on Friday, with resources rallying on the back of rebounding commodity prices and bargain-hunting.

By 09:19 local time, the JSE All Share [JSE:J203] index rose 0.79%, with resources gaining 1.27%, gold miners dropping 1.33% and platinum miners firming 0.61%. Banks picked up 0.42%, financials were up 0.30% and industrials collected 0.54%.

The rand was bid at R6.89 to the dollar from R6.93 at the JSE's close on Thursady. Gold was quoted at $1 512.50 a troy ounce from $1 490.67/oz at the JSE's previous close, while platinum was at $1 775.50/oz, from $1 757.50/oz previously.

The local market opened a little better in line with generally positive global equities, a trader said. "It looks like we will hold the strength for the rest of the day," she said, noting that bargain-hunting and firmer commodities improved investor sentiments.

Dow Jones Newswires reported that Asian stock markets were mixed on Friday, with a sharp fall in banking stocks hurting the Japanese market, while shares in Seoul failed to staunch their losses despite the Bank of Korea's surprise decision to hold rates steady.

Japan's Nikkei Stock Average fell 1.3%, Australia's S&P/ASX 200 rose 0.1%, and South Korea's Kospi Composite slid 0.2%. Hong Kong's Hang Seng Index dropped 0.4%, Taiwan's main index fell 0.4%, and the Shanghai Composite index rose 0.1%.

Most investors were wary after the sharp volatility in markets this week. "Despite the bounce in risk sentiment, global cyclical indicators are going to be under rather intense scrutiny going forward," RBC said in a note to clients. "These indicators will clarify whether this is just a rough and tumble episode of profit-taking or a potential inflection point."

On Thursday, US stocks climbed higher, reversing sharp morning losses, as commodities rebounded and defensive stocks strengthened.

The Dow Jones Industrial Average gained 65.89 points, or 0.52%.