JSE strong on Bernanke comments

Johannesburg - The JSE was firm as it entered the afternoon session on Monday, as markets continue to react positively to weekend comments by US Federal chair Ben Bernanke that he would intervene in the economy should "unexpected developments" further threaten US recovery.

By 12:01 local time the JSE all share index had added 1.61%. Resources were 2.19% higher. Platinum miners rose 2.36% while Gold miners gained 0.35%. Banks added 1.70%, financials were 1.40% up and industrials were also up 1.15%.

The rand was bid at R7.29 to the dollar, unchanged from the JSE's close on Friday. Gold was quoted at $1 235.22 a troy ounce from $1 241.40/oz at the JSE's previous close, while platinum was at $1 525.00/oz from $1 532/oz before.

"Markets liked what Bernanke had to say that he will take action if necessary. Every sector is in the green and the rand is a little bit
stronger as a result as well," a local trader said.

The trader added that local data markets would be watching this week include the money supply data to be released by the South African Reserve Bank (Sarb) this week as well as vehicle sales figures.

Dow Jones Newswires reports that Asian markets traded mostly higher on Monday, but Japan's shares ended well off the day's highs as traders were disappointed by the Bank of Japan's new easing measures aimed at addressing the country's anaemic economic recovery and a high yen.

Japan's Nikkei Stock Average, which rose as much as 3.2% during the session, finished the day 1.8% higher at 9 149.26.

"The market was expecting something more drastic, like monetary easing in quantitative terms," said Susumu Kato, chief economist at Calyon Capital Markets Asia.

UK markets will be closed on Monday for the Bank Holiday.