JSE hits 12 month high

Johannesburg - The JSE put in a strong finish on Wednesday, closing at its highest level in 12 months on the back of a surge in global risk appetite amid more positive sentiment.

During the session the bourse soared to a fresh 12-month high of 26 067. It finished at 26 056.

The JSE all share index gained 1.5%, with resources adding 2%. But the day's real big winners were financial which added 2.31% and banks which gained 3.70%. Industrials rose 0.57%.

But platinum counters gave up 1.75% and gold miners lost 0.74%.

The rand was bid at 7.26 to the dollar from 7.35 just before the JSE closed on Tuesday. Gold was quoted at $1 060.60 a troy ounce from $1 058.30/oz just before the JSE's last close, and platinum was at $1 356.50/oz, from $1nbsp;358.50/oz at its previous close.

"We've had two pieces of good news today which has driven the market. Exports from China exceeded expectations which means there will be demand from the West, including South Africa. So this is good news, particularly for us.

"The second piece of good news was JP Morgan's results, which were also better than expected. Together this news, along with better than expected US data, has buoyed global sentiment," a local equities trader said.

"Investors who have been sitting on the sidelines have seen this as a good reason to get back into the market," he added.

Dow Jones Newswires reports that strong earnings from Intel and JP Morgan Chase put the US stock market back on track Wednesday, pushing the Dow Jones Industrial Average toward the 10 000 milestone for the first time in more than a year.

Investors also welcomed better-than-expected September U.S. retail sales, which bolstered bulls' case that the US economy is on a firmer recovery ground.

Indeed, the last time the Dow was at its present level was on the downside, during the full throes of a crisis on Wall Street. Traders in recent days have eagerly anticipated the average's return to a major round- number benchmark - this time, on the way higher - as an important symbol that markets have finally returned to normal. But many participants also remain on guard against potential nasty surprises in the earnings season.

The Dow was recently up 80 points, or 0.8%, trading at 9 950.72, just off a morning high less than 25 points from the 10 000 mark. The measure is coming off a 15-point decline in Tuesday's session, which was marked by light volume as traders awaited earnings reports from several of the Dow's components.

The index last traded above 10 000 on October 7 2008 and closed above that level on October 3.

- I-Net Bridge