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Johannesburg - The JSE ended on a strong note on Friday, as rallying gold stocks and better than expected US jobs data bode well for the local bourse.
Even though general mining counters were firmer, gold "outperformed considerably", a dealer said. Gold price hit a new all-time high of US$1 398.20 an ounce on Friday.
By 17:00 local time the JSE all share index was up 0.41%, with platinum miners rising 1.72%, resources climbing 1.29% and gold stocks surging 3.48%. Financials firmed 0.07% higher and banks advanced 0.12%, but industrials fell 0.29%.
The rand was bid at 6.77 to the dollar from at 6.78 at the JSE's close on Thursday. Gold was quoted at US$1 395.78 a troy ounce from $1 380.68/oz at the JSE's previous close, while platinum was at $1 770.50/oz from $1 749.50/oz before.
"The US jobs data was responsible for the upside on the local exchange. The numbers were twice as good as expected," the dealer said.
The dealer said the US Federal Reserve's announcement of quantitative easing on Wednesday was positive for equities as investors realised that the Fed was there to provide a "safety net" regardless of how bad the economic data was.
Dow Jones Newswires reported that US stocks bobbed between positive and negative territory on Friday despite data showing the US economy added jobs in October for the first time in five months, as the unemployment rate remained stubbornly high at 9.6%.
The Dow Jones Industrial Average fell 9 points, or 0.1%, to 11 424, in early trading.
Nonfarm payrolls rose by a greater-than-expected 151,000 last month as private-sector employers added 159,000 jobs, the Labor Department said.
Economists had expected a rise of only 60 000. The September number was revised to show payrolls fell 41 000, less than an original estimate of a 95 000 decline.
However, the unemployment rate, which is obtained from a separate household survey, remained at a lofty 9.6% in October. About 14.8 million people who would like to work can't get a job. The jobless rate has been above 9.0% since May 2009, right before the recession ended. Economists had expected the rate to remain at 9.6% for October.