Johannesburg - The JSE opened slightly higher on Friday with rising commodity prices
and upbeat US corporate results boosting sentiment, while the forthcoming
publication of the European bank stress tests tempered the positive mood.
By 09:32
local time the JSE all share index had risen 0.50%, as resources gained 1.01%,
platinum miners climbed 1.19%, and gold miners added 0.25%. But banks lost
0.21%, while financials were almost unchanged (0.03%) and industrials firmed
0.26%.
The rand
was bid at R7.42 to the dollar from R7.44 at the JSE's last close. Gold was
quoted at $1 198.12 a troy ounce from $1 194.85/oz at the JSE's previous
close, while platinum was at $1 535.50/oz from $1 527.00/oz before.
Mpho
Mojalefa, trader at BJM Private Client Services, said a big run in commodity
prices overnight and US corporate earnings were the real market drivers.
"US
corporate results do not only beat estimates, but companies are also presenting
a bullish outlook," Mojalefa said.
Mojalefa
said the stress test results expected to be published on Friday could prove to
be a market driver. European markets opened weaker ahead of the stress test
results.
Following
speculation on Thursday of an early publication of the stress test results, the
data appear to be slated for a 16:00 GMT release, as originally planned,
according to the Dow Jones Newswires.
Markets
will therefore be left on tenterhooks for much of the trading day.
"We
think the stress testing has a 'buy the rumour, sell the fact' feel to
it," said Kenneth Wattret, economist at BNP Paribas.
A surge
on Wall Street drove Asian stock markets higher on Friday, with construction
equipment makers gaining on strong earnings from the US's Caterpillar and
regional technology plays rising after Qualcomm's earnings spurred a rally on
Nasdaq.
The 91%
surge in Caterpillar's second-quarter profit was lifting sentiment globally,
said Macquarie Equities Investment Adviser Brad Gordon in Wellington.
"Caterpillar was one of the leaders into the downturn - they pretty much
closed shop in 2007 - so they are seen as a bit of a bellwether," he said.
Overnight the
Dow Jones Industrial Average rose 201.77 points, or 1.99%, to 10322.30, marking
its biggest one-day gain since July 7 and its highest close since July 15.
Japan's
Nikkei Stock Average was up 2.28% after a five-session losing streak, and Hong
Kong's Hang Seng Index rose 0.76%.
- I-Net Bridge