JSE follows world markets higher

Johannesburg - The JSE edged higher in early trade on Monday, taking direction from firm global markets.

However, an equities trader noted that gold counters had come under pressure as investors moved away from safe-haven buying.

By 09:14, the JSE all share index had collected 0.75%. Resources edged up 0.65% and platinum miners were up 1.85%. However, gold counters lost 3.96%.

Banks added 0.86%, financials gained 1.05% and industrials put on 0.66%.

The rand was last bid at R8.98 to the dollar, from R9.08 when the JSE closed on Friday. Gold was quoted at $876.53/oz a troy ounce from $905.05/oz at the JSE's last close, and platinum was at $1 144/oz from its previous close of $1 154.50/oz.

"We are following global markets higher. Also some significant technical levels were broken in the markets and that spurred some buying," the trader said.

"The gold price has come off as we see a move away from safe-haven buying. Gold counters are talking a pounding. The rand is strong and maybe it is hampering some moves, but the positive sentiment is overpowering at the moment.

"Dow futures are up and Europe is also up, so that paints a good picture for the rest of the week. It's a short week so we may see the market dip slightly as the week progresses," he said.

Dow Jones Newswires reports US stocks rose on Friday and the DJIA capped its best four-week winning streak since 1933 as investors continued betting on an economic rebound, despite grim jobs data.

The unemployment rate in March climbed to 8.5%, the highest since 1983. Yet markets continued to act as if an economic recovery was in the works, hoping the combination of International Monetary Fund lending, economic stimulus spending and bank-stabilisation plans would finally reignite growth.

On Friday, the DJIA rose 39.51 points to 8 17.59, its highest close since February 9, bringing its advance to 3.1% on the week. That was the fourth straight week of gains, and at 21%, the biggest advance for this kind of four-week streak since May 1933. The broad S&P 500 index added 8.12 to 842.5. For the week, the S&P 500 added 3.3%, and has cut its losses on 2009 to 6.7%. The Nasdaq Composite added 19.24, or 1.2%, to 1621.87, and is now up 2.8% for the year to date.

Asian stock markets maintained their upward momentum on Monday, lifted by another stronger US close and ignoring North Korea's weekend rocket launch.

Japan's Nikkei ended 1.2% higher and Hong Kong's Hang Seng was last up 3.4%.

Stocks in Europe are likely to start higher as markets resume their advance after Friday's pause.

- I-Net Bridge