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JSE recovers on bargain-hunting

Johannesburg - The JSE lifted back into the black on Wednesday morning, as the market rebounded from the losses of the previous day.

A local trader said: "Yesterday, the call for a Greek referendum on the bailout plan gave a shock to the markets. Today, we're experiencing a bit of a rebound and a bit of bargain-hunting."

The trader said that yesterday's fallout was eased somewhat by better-than-expected economic data out of the US. He said that also at play locally was the weakening of the rand. The rand level had been aiding exports.

Investors were starting to look at Greece in the light of the bigger picture. Greece was small and markets were pricing in a default.

What was now being considered was how the default would affect other European countries.

By 09:09 local time, the JSE All Share [JSE:J203] index picked up 0.81% with resources rebounding upwards by 1.12% and gold stocks strengthening 1.10%. Platinum collected 0.89%.

Industrials rose 0.66%, financials generated 0.53%, and banks collected 0.36%.

The rand was bid at R8.03 to the dollar, from R8.08 at the JSE's close on Tuesday. Gold traded at $1 724.67 a troy ounce from $1 702.22/oz at the JSE's previous close, while platinum was at $1 594.20/oz, from $1 578.20/oz previously.

Dow Jones Newswires reported that Asian markets fell on Wednesday in nervous trading, taking a lead from Wall Street amid fears that a Greek referendum on its latest bailout deal could derail Europe's grand plan to fix its crushing debt crisis.

Greece's cabinet on Wednesday approved plans for a referendum on the country's latest bailout package, despite an open revolt by ruling party lawmakers and amid fears the referendum could stoke further uncertainty in world financial markets.

The decision came after a six-hour meeting, one day after embattled socialist Prime Minister George Papandreou surprised lawmakers by calling for a referendum on the €130bn aid deal hammered out by European leaders in Brussels last week.

Finland will decline to contribute further funds to efforts to stabilise the euro and save Greece if measures agreed by European Union leaders turn out to be insufficient, the country's prime minister said, cautioning that the plan will fail unless the most debt-ridden economies commit now to massive reforms.

European bourses are likely to start tentatively higher. 

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Rand - Dollar
18.89
+0.2%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
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