Johannesburg - Positive retail sales data and banks stress
test results in the US boosted market sentiment and helped world stocks trade
higher on Wednesday. The JSE tracked global stocks to open in the black on
Wednesday.
At 09:14 local time, the JSE All Share [JSE:J203] index was
up 0.58% to 34 374.57 points. Platinum miners rose 1.10%, banks lifted 0.80%,
and financials added 0.73%. Industrials garnered 0.61% and resources gained
0.48%. Gold miners were flat (-0.06%).
The rand was trading at R7.55 to the US dollar, unchanged
from the JSE's close on Tuesday. Gold was quoted at $1 670.31 a troy ounce from
$1 694.89 at the JSE's previous close, while platinum was at $1 686/oz, from $1
690/oz.
A local trader that risk appetite was high at the moment
following the positive bank stress tests. He said that dividend pay-out
increases by some of the US banks was also lifting market sentiment.
"The strength of the capital injections into the
banking system is definitely looking very strong. Although the European
situation is still one that is not entirely fixed, it seems the effect of the
capital injections into these systems are paying off," he said.
Asian stock markets rallied on Wednesday with financials
outperforming across the region as positive economic data in the US and
favourable stress test results for a number of major US banks boosted investor
sentiment, while the Seoul market jumped to multi-month highs.
US retail sales for February rising at their fastest pace in
five months and positive stress tests for fifteen of the nineteen largest US
banks helped push stocks on Wall Street to multi-year closing highs on Tuesday.
The Nikkei rose 1.5%, the S&P/ASX gained 0.9%, the HSI
added 0.3%, the Kospi advances 1.0%, the Taiex jumps 1.2%, the Sensex climbs
0.3%, the Shanghai Composite tumbled 1.5%, the STI gained 0.8%, and the NZX-50
added 0.8%.