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Johannesburg - South African stocks closed firmly in the black on Friday amid far better than expected US retail data.
The Commerce Department said Friday that US retail sales rose by 0.3% in February, with many expecting a decline.
By 17:00 the JSE all share index was up 1.26%, with resources gaining 1.98%, gold miners picked up 2.21% and platinum miners firmed 1.86%. Banks pocketed 1.12%, financials found 0.93% and industrials were up 0.69%.
Shortly before the markets close, the rand was bid at R7.37 to the dollar, from R7.45 at the JSE's close on Thursday. Gold was quoted at $1 110.02 a troy ounce from $1 102.22 at the JSE's last close. Platinum was at $1 616.50/oz from $1 586/oz at the JSE's last close.
A local equities dealer said: "Our market this morning was pushed by a reversal from US stocks when we closed on Thursday. The US rallied overnight.
"And then US retail data out earlier was better than expected, boosting the local market further. We are very much sentiment driven at the moment," he said, also noting an increase in platinum prices.
Dow Jones Newswires reported that US stocks opened higher on Friday, as investors were cheered by an unexpected jump in US retail sales last month and reports of a crowd-pleasing nomination for the Fed's vice chairperson spot.
The Dow Jones Industrial Average was up 18 points, or 0.2%, at 10631.
The Commerce Department said Friday that US retail sales rose by 0.3% in February, while economists surveyed by Dow Jones Newswires were expecting a 0.3% decrease. Excluding the car sector, retail sales rose 0.8%, more than the 0.1% forecast increase. Car and auto parts sales fell 2% in February.
Meanwhile, investors lauded President Barack Obama's plan to nominate San Francisco Fed President Janet Yellen as vice chairperson of the Federal Reserve. Known as a strong supporter of Fed Chairman Ben Bernanke's low-interest-rate policy to fight the deep economic downturn, Ms. Yellen would replace Donald Kohn as Fed vice chair when the central bank veteran's term expires in late June.
Yellen's experience and dovish stance on inflation would be a smooth extension of Kohn's role and would likely keep the Fed's future rate hikes moving at an appropriate pace, said Phil Orlando, equity strategist at Federated Investors.
- I-Net Bridge