Johannesburg - The JSE tracked stronger US and Asian markets firmer on Tuesday, led by a recovery in resources and particularly platinum stocks. A local trader said bargain hunting was broad based.
At 09:12 the JSE all share index was 0.87% higher, with resources up 1.74%, gold miners adding 1.76% and platinum miners collecting 2.7%. Banks were flat (-0.02%), financials added 0.06% and industrials moved up 0.38%.
The rand was bid at R7.46 to the dollar from R7.55 when the JSE closed on Monday. Gold was quoted at $1 105.50 a troy ounce from $1 087.89 at the JSE's last close, and platinum was at $1 543/oz, from $1 544/oz at the bourse's previous close.
A local equity trader said it was not unexpected to see a recovery after the market got hit quite hard.
"Last year we saw similar dips and the market always gets bought back," he said.
He added that commodity prices are starting to recover as the euro picked up a bit.
"The euro has been weak - but we are starting to see gold and platinum prices ticking up and the oil price is rising too. We are seeing some buying now at what have been pretty much oversold levels on the shares."
He added there is still some nervousness around and company results will continue to be watched.
Impala Platinum
"The volatility will continue for some time, but we seem to be at levels where bargain hunters have come back into the market."
He added that Impala Platinum had seen some attention this morning, despite the trading statement yesterday indicating earnings will be lower.
"But the market was not unaware of that," he added.
Impala advised on Monday that its headline earnings per share (HEPS) and basic earnings per share (EPS) for the six months ended December 2009 are expected to be between 200 and 220 cents which is between 75% and 77% lower than those of the six months ended December 2008.
It said the expected decrease in the HEPS and EPS is primarily due to the significant decrease in relative metal prices.
Dow Jones Newswires reports that Asian markets are higher on Tuesday in catching up with Wall Street's advance on Monday, but US stock futures are lower again so any further gains look iffy. European stock markets as a result are likely to open lower.
Japan's Nikkei 225 was up 1.63% and Australia's S&P/ASX 200 added 1.5%. However, Hong Kong's Hang Seng Index was off a marginal 0.15%.
Dow Jones Industrial Average futures were down 15 points in screen trade.
European stock markets are set to open lower, as markets continue to gyrate, while investors get a look at more earnings reports on Tuesday and ponder Greece's budget prospects.
For Tuesday's opening, IG Markets is calling the FTSE down 18 at 5229, the DAX down 10 at 5644 and the CAC down 13 at 3749.
Overnight the Dow was up 118 points, or 1.17%.
- I-Net Bridge