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JSE firms on global sentiment

Mar 08 2010 17:46

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Johannesburg - South African stocks tracked positive global sentiment on Monday ending in the black, assisted by strong commodity prices.

By 17:00 the JSE all share index was up 0.76%, with resources gaining 0.90%, platinum miners were 0.69% better, but gold stocks were down 0.99%. Banks garnered 0.94%, financials added 0.62%, and industrials picked up 0.68%.

The rand was bid at R7.37 to the dollar, from R7.45 seen at the JSE's close on Friday. Gold was quoted at $1 126.93 a troy ounce from $1 133.50 at the JSE's last close. Platinum was at $1 594/oz from $1 581/oz at the JSE's last close.

A local equities dealer said: "Momentum on the market has continued from Friday, following good US jobless claims data. Commodity prices continue to rise, and with concern over Greece subsided for now, a weaker dollar, and conversely a stronger euro, has favoured our local market.

"General global market sentiment is upbeat amid current positive news-flow."

Dow Jones Newswires reported that US stocks opened slightly higher on Monday, fuelled by a flurry of deals and rising commodities and metals prices that boosted materials and energy.

The Dow Jones Industrial Average was up 12 points, or 0.1%, at 10578 in early trading.

Stocks rallied at the end of last week after a report showed that the US lost only 36 000 non-farm jobs in February, a smaller loss than economists had expected, and unemployment held steady at 9.7%.

Meanwhile, the market is nearing Tuesday's one-year anniversary of its 2009 lows. On March 9, 2009, the S&P 500 hit its worst levels in 12-and-a-half years.

Overseas, China central bank chief Zhou Xiochuan indicated that the country in time will change its much-criticised current exchange policy, sending one-year dollar-yuan forwards lower though the over-the-counter spot rate didn't change much.

In Europe, comments from French President Nicolas Sarkozy on being ready to assist Greece and from German Finance Minister Wolfgang Schaeuble on a possible European Monetary Fund helped nudge the euro higher.

- I-Net Bridge

 
 
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