JSE extends gains

Johannesburg - South African stocks extended gains by noon on Thursday continuing to be supported by the available liquidity and positive global momentum.

At 12:03 the JSE all share index had added 1.49%, with resources gaining 1.58%, gold counters 1.93% higher and platinum miners firming 1.70%.

Banks rose 1.94%, financials added 1.73% and industrials put on 1.25%.

The rand was bid at R7.33 to the dollar from R7.33 when the JSE closed on Wednesday. Gold was quoted at $1 020.10 a troy ounce from $1 016.70/oz at the JSE's last close, and platinum was at $1 344.50/oz, from $1 342/oz at its previous close.

"We are up again on the market, but we must remember that today will be a volatile day because of the futures close-out. Markets across the world are strong. We are seeing that the momentum is still behind the weak dollar, although we are looking a bit stretched and overbought," a Johannesburg- based trader said.

"Liquidity is supporting the market. We have housing starts in the US tomorrow and those figures will give an indication of the state of the economy. The platinum and gold prices are up, and that is supporting the momentum behind the economic recovery.

"Markets are looking good, but we are probably moving into an area where we are overstretched and overbought, so it won't be surprising to see some profit taking," he said.

- I-Net Bridge