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Johannesburg - Stocks remained
firmly in the black by noon on Wednesday driven by positive global momentum
with strong mining counters leading the upside.
At 12:00 the JSE all share index had added 1.40%, with resources gaining
2.19%, gold counters 4.39% higher and platinum miners firming 3.18%.
Banks collected 0.75%, financials put on 0.84% and industrials were up
0.71%.
The rand was bid at 7.37 to the dollar from 7.40 when the JSE closed on
Tuesday. Gold was quoted at $1 019.49 a troy ounce from $995.50/oz at
the JSE's last close, and platinum was at $1 336/oz, from $1 323/oz at
its previous close.
"We are looking good. There is still some good momentum. The dollar is
still on the back foot and that shows that there is appetite for risk away
from the dollar," an equities trader said.
"Equities across the world are recovering. We have seen that any
weakness in the markets creates buying. The East was up nicely and that
flowed into our market.
"Metals are leading us higher. Gold shares are up strongly and platinum
stocks are also up nicely. The rand is still very strong, but that doesn't
seem to be bothering the metals. There have been some good comments from
Bernanke about the recession. There is a sea of liquidity. The money out
there is looking for investments that are better than cash.
"Overall, it's positive. Dow futures are up at the moment and Europe is
steady, things are looking quite positive," he said.
Dow Jones Newswires reported that the FTSE 100 showed very little
reaction to UK economic data and despite the UK August claimant count
hitting its highest point since August '07. A trader said "the focus remains
on the Federal Chairman's comments that the US recession is [probably] over.
Unemployment is still an issue globally but there is a silver lining to
every cloud." Meanwhile, there are a lot of data out of the US, on Wednesday.
US CPI, current account balance are at 14:30, industrial production at
15:15 and NAHB housing market at 19:00.
The FTSE 100 had last gained 1.34%.
US stocks are called up carrying on from the firmer close in the
previous session and as volatility continues to fall, said David Morrison at
GFT. He called the DJIA up 20 points and the S&P 500 up two points. He noted
that volatility, as measured by the Vix index, was declining despite the
six-month rally in stocks and the triple-witching expiry of stock options,
stock index futures and options this week.
- I-Net Bridge