JSE tracks firmer global markets

Johannesburg - South African stocks ended a fraction firmer on Monday tracking international markets, with the local bourse led higher by gold and platinum miners.

By 17:00 the JSE all share index was up 0.06%, having spent a large portion of the day about 200 points up, led by platinum miners 1.11% firmer and gold miners advancing 1.76%. Resources fell at close into the red, down to 0.06%. Banks gained 0.50%, financials added 0.14% and industrials were 0.15% higher.

The rand was bid at R7.55 to the dollar from R7.61 when the JSE closed on Friday. Gold was quoted at $1 096.46 a troy ounce from $1 087.43 at the JSE's last close, and platinum was at $1 546/oz, from $1 617/oz at the bourse's previous close.

A local equities dealer said: "As we wait for the US to get up and running, Dow futures suggest a positive start. We have read comments from a number of sources who believe that the recent drop was overdone on the back of recent comments made by President Obama on US banks and monetary tightening in China.

Concern was also raised that Ben Bernanke might not be reappointed as Fed chairperson, however it seems likely that he will be re-appointed."

On the local front, gold stocks and platinum stocks are higher today amid better prices, and with very little economic data locally, we have looked to track international markets.

Dow Jones Newswires reports that US stocks opened higher on Monday, bouncing back from last week's dismal close as materials climbed on upbeat earnings and encouraging news from Greece boosted investor sentiment.

The Dow Jones Industrial Average was up 73 points, or 0.7%, to 10,246, in early trading.

Appeasing some recent jitters over its sovereign debt, the Greek government enjoyed a much-needed boost Monday as investors piled into its new €5bn, five-year syndicated bond issue, registering more than €20bn of orders in around three hours.

Last week, the Dow closed down more than 4%, marking its worst week on a percentage basis since the week of March 6, as investors fretted over US bank restrictions posed by President Barack Obama and the potential for monetary tightening from China. Concerns that Fed Chairman Ben Bernanke might not be re-confirmed later this week were somewhat assuaged by key officials' reiteration of support for the chairman over the weekend.

Investors face a clutch of key political and economic events this week, including a Fed interest rate decision and Obama's State of the Union address on Wednesday.

- I-Net Bridge