Johannesburg - The JSE got off to a modestly positive start on the first day of trade in 2011 on Monday, as local investors kept an eye on developments in the global markets. Commodities were stronger, lifting resource counters.
China's Purchasing Managers' Index (PMI) data, which measures manufacturing activities, slowed, indicating that China may not need to look at further ways - such as interest rate hikes - to put brakes on the economy, a trader said.
By 09:28 local time the JSE all share index had risen 0.33%, with resources gaining 0.81%, gold miners picking up 0.64% and platinum miners firming 0.44%. But banks shed 0.11%, while financials (-0.09%) and industrials (0.07%) were flat.
The rand was bid at R6.61 to the dollar from R6.64 at the JSE's close on Friday. Gold was quoted at $1 419.13 a troy ounce from $1 409.69/oz at the JSE's previous close, while platinum was at $1 775.00/oz from $1 758.20/oz before.
Most global markets including London and Tokyo are closed. "I don't think we are going to see significant volumes today and even for the rest of the week," the trader said. Volumes may start picking up from next week.
Dow Jones Newswires reports that Asian stock markets kicked off the year with a healthy start, rising across the board on hopes the global economic recovery will continue in 2011.
"In the first half of 2011, I expect the US stocks to continue to do well on the economic recovery there, which should bode well for Asian stocks. However, the (US) recovery is expected to be anemic and once investors see that, there is likely to be a sharp (downward) correction," said Castor Pang, research director at Cinda International in Hong Kong.
In Hong Kong, the Hang Seng was last 1.72% firmer.
European stock markets are likely to tip off the new year with gains on Monday, with higher Wall Street futures signalling optimism of a US economic advance this year.
For the first week of 2011, "encouraging news is likely...with a big increase in (US nonfarm) payrolls anticipated," this Friday, ING said.