JSE tentative at the open

Johannesburg - The JSE was tentatively higher at the opening on Monday, with investor attention still focused on Europe.

Sasha Naryshkine, portfolio manager at Vestact, said market players would be watching Italian bond yields amid growing fears about that country's finances.

By 09:15 local time, the JSE All Share [JSE:J203] index was up 0.19%, with gold stocks lifting 1.35%, resources adding 0.16% and platinum miners firming 0.34%. Banks improved 0.61%, financials garnered 0.56%, and industrials were flat.

The rand was bid at R7.88 to the dollar, unchanged from the JSE's close on Friday. Gold traded at $1 770.88 a troy ounce from $1 752.47/oz at the JSE's previous close, while platinum was at $1 642.50/oz, from $1627.70/oz previously.

Dow Jones Newswires reported that Asian stock markets were mostly lower on Monday, tracking Wall Street's fall on Friday with many investors keeping to the sidelines as Greek politicians continued their efforts to avoid a disorderly debt default.

The regional mood was cautious after US payrolls undershot expectations, while Europe's debt crisis dragged on with bond yields in Italy rising to fresh highs last week.

Jamie Spiteri, equities dealer at Shaw Stockbroking in Sydney, said that despite some progress by European leaders to contain the region's debt crisis, markets will remain sceptical until results are evident. "While there may be arrangements which are being broadcast by the major political heads across Europe, they've still got to execute on that," he said.

Markets were watching the political situation in Greece closely after embattled prime minister George Papandreou and New Democracy opposition party leader Antonis Samaras agreed to form a unity government in order to secure a critical European-led bailout for the country. The agreement follows a week of turmoil in Greek politics that climaxed in the Papandreou government surviving a vote of confidence early Saturday.

European stock markets were called to open cautiously higher on progress in the Greek political situation while investors retain a healthy dose of scepticism in fearing another false start.