Publications
Partners
Johannesburg - The JSE gave up some gains but ended firmer on Wednesday, with resources stocks gaining flavour on the back of high commodity prices. With the exception of gold stocks, other mining counters made solid gains.
The Portuguese bond auction, which seemed to have gone smoothly, also boosted sentiments and reduced fears, said Andrew Todd, an equity derivatives trader at Imara SP Reid.
In midday trade, the JSE all share index was 1.27% higher.
At 17:00 local time, the JSE all share index was up 1%, with platinum rising 1.16% and resources jumping 1.96%. But gold miners, the only losers, lost 0.17%. Banks firmed 0.70%, financials inched up 0.62% and industrials added 0.24%.
The rand was trading at 6.83 to the dollar from 6.85 at the JSE's close on Tuesday. Gold was quoted at US$1 378.87 a troy ounce from US$1 375.36/oz at the JSE's previous close, while platinum was at $1 794.00/oz from $1 758/oz before. Todd said investors appeared to be switching from retailers, which outperformed in 2010, into resources, which underperformed over the same period.
Dow Jones Newswires reported that US stocks followed European equities higher as investors reacted to a closely watched Portuguese government debt auction and strong import price data.
The Dow Jones Industrial Average gained 55 points, or 0.5%, to 11 728 in early trading.
European stocks rallied and the euro rose 0.5% against the dollar as the Portuguese government sold EUR1.25bn (US$1.62bn) in bonds in an auction, following days of mounting concern over Portugal's finances.
