JSE high as investors study stress tests

Johannesburg - The JSE stayed stronger at noon on Monday as local investors digested the results of European bank stress tests
and remained cautious in line with global equities.

By noon local time the JSE all share index had gained 0.19%, as resources added 0.11%. But platinum miners lost 0.45%, while gold miners garnered 0.48%. Banks rose 0.18%, financials were up 0.29%, and industrials edged up 0.25%.

The rand was bid at R7.37 to the dollar from R7.42 at the JSE's close on Friday. Gold was quoted at $1 189.49 a troy ounce from $1 190.22/oz at the JSE's previous close, while platinum was at $1 543.50/oz from $1 542/oz before.

A trader said the local market was monitoring developments on the global stock markets, which were flat amid caution.

The trader said investors were digesting the results of the stress tests, which found that only seven out of 91 banks would have to raise new capital.

The market was questioning the credibility of these tests, she said.

Dow Jones Newswires reported that European stock markets traded marginally lower on Monday, as early relief over Friday's release of European bank stress tests gave way to a degree of scepticism over the rigor of the tests.

The tests, conducted on 91 banks in the region by the Committee of European Banking Supervisors, found that only seven, relatively small banks would have to raise new capital to weather a potential economic downturn.

Market participants welcomed the results on Wall Street on Friday and Asian markets, driving appetite for risk higher in the European session early on Monday.

Most Asian markets advanced on Monday as investors reacted with relief to the results of the European bank stress tests released on Friday, although the gains were modest as doubts remained over the health of the lenders there.

Japan's Nikkei Stock Average advanced 0.8%, and and Hong Kong's Hang Seng Index gained 0.1%.

  - I-Net Bridge