Publications
Partners
Johannesburg - The JSE opened higher on Thursday with the
platinum‚ gold mining and resource indices leading the upside‚ on the back of
risk appetite returning to the market after the US Federal Reserve’s minutes on
Wednesday night suggested that quantitative easing (QE3) would be seen in
September.
At 9.44am local time the All Share [JSE:J203] index was up
0.51% at 35‚798.21 points‚ with the platinum index 1.55% higher‚ the gold
mining index 1.23% stronger and resources up 1.21%.
At 9.42am local time the platinum price extended its
previous gains‚ trading 1.63% higher at R1‚556 per ounce‚ on the back a weaker
dollar and the platinum woes at South African platinum mines. The gold price
also showed gains trading 0.75% stronger at R1664.95 per fine ounce.
“Risk appetite is back in the market after Ben Bernanke’s
comments that they are still looking at further stimulus that is ’coming fairly
soon’”‚ said Hennie Fourie‚ stockbroker at PSG Konsult in Pretoria.
“These comments are pushing the markets higher. When there
is risk appetite the price of resource counters increases. The dollar weakened‚
supporting the platinum and gold prices and is also supporting our commodity
shares. Platinum counters are the best performers this morning with some
bargain hunting seen in this sector‚” he added.
Asian markets were trading higher with Hang Seng Index last
up 1.19% and the Nikkei closing 0.51% higher. Global markets should continue to
react to the Fed minutes today‚ while European PMI figures this morning will
also have an influence. The FTSE 100 was last seen trading 0.44% higher.
Rand Merchant Bank said in a morning note that the drop in
the flash HSBC Chinese PMI figure to 47.8 puts was at a nine-month low.
“The economy was not managing to pick up any speed. No
wonder an Australian minister declared the end of the resource boom. If there
is some compensation PBoC Governor Zhou has hinted that we will be seeing
further monetary easing‚” the bank said.
“Headlines around the world scream that unrest has spread to other mines in SA. There is some compensation at least: combine the strikes‚ the Fed minutes and the hope of ECB action next month and precious metal prices are soaring‚” it added.
* Follow Fin24 on Facebook, Twitter and Google+.
