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Rand rallies to fresh high

 
Johannesburg - The JSE opened stronger on Wednesday, bolstered by strong metals prices, which offset the negative effects of the strong rand. In morning trade, the rand tested 6.85 against the dollar.
Expectations of quantitative easing in the US are also bolstering world markets.
 
By 09:20 local time the JSE all share index was up 0.48%, with industrials adding 0.07%, banks rising 0.78% and financials gaining 0.54%. Platinum miners firmed 1.06% and resources rose 0.86%, but gold stocks lost 0.11%.
 
The rand was bid at 6.85 to the dollar from 6.87 at the JSE's close on Tuesday.
 
Gold was quoted at US$1349.13 an ounce from $1,337.15/oz at the JSE's previous close, while platinum was at $1,706.00/oz from $1,692.00/oz before.
 
A trader said the local market was strong across the board, thanks to sharply higher commodity prices and expectations of quantitative easing.
    
However, gold stocks were slightly negative despite the record high price of the metal.
 
The Bank of Japan unexpectedly cut interest rates and set up a fund to buy private- and public-sector assets.
 
Dow Jones Newswires reports that Asian stock markets posted solid gains on Wednesday, riding Wall Street's coattails with Australian gold miners surging as the metal hit a new record high.
 
Possible "quantitative" easing in the US will be the big event for equities globally," said City Index Head of Dealing Michael McCarthy. The Dow Jones Industrial Average finished up 193 points, or 1.8%, to 10,945, its highest close since May 3.
 
In Hong Kong the Hang Seng was last up 1.45% and in Tokyo the Nikkei closed up 1.8%. In early London trade, the FTSE100 was 0.03% firmer.
     
On the JSE, Anglo American (AGL) gained 3.86 rand or 1.32% to 295.56 rand, BHP Billiton (BIL) rose 2.50 rand or 1.10% to 230.00 rand and Sasol (SOL) climbed 1.04 rand to 324.54 rand.
     
Among gold miners, AngloGold Ashanti (ANG) fell 1.94 rand to 325.26 rand, but Gold One International (GDO) gained seven cents or 3.68% to 1.97 rand.
      
Impala Platinum (IMP) was up 2.49 rand or 1.36% to 186.24 rand, Lonmin (LON) rose 3.16 rand or 1.67% to 192.01 rand, Eastern Platinum (EPS) rallied 35 cents or 3.60% to 10.08 rand, and Wesizwe (WEZ) surged nine cents or 5.81% to 1.64 rand.
 
African Rainbow (ARI) was 2.33 rand or 1.34% higher at 175.83 rand and iron ore producer Kumba Iron Ore (KIO) gained 4.50 rand or 1.21% to 376.453 rand.
 
Among industrials, Tiger Brands (TBS) rose 1.94 rand or 1.04% to 188.95 rand. York Timber Holdings (YRK) climbed 10 cents or 2.54% to 4.00 rand.
 
In the banking sector, Standard Bank (SBK) rose 1.13 rand or 1.03% to 110.82 rand, ABIL (ABL) added 54 cents or 1.54% to 35.69 rand, and Capitec (CPI) gained 2.40 rand or 1.59% to 153.40 rand.
 
Retailer JD Group (JDG) garnered 53 cents or 1.14% to 47.00 rand and Woolies (WHL) gained 30 cents or 1.15% to 26.50 rand.
 
Construction group Murray and Roberts (MUR) rose 45 cents or 1.01% to 44.85 rand, and Aveng (AEG) firmed 45 cents or 1.05% to 43.19 rand.
 
Dimension Data (DDT) shed one cent to 13.10 rand. Its wholly-owned Asia arm Datacraft announced that it has made a conditional offer to acquire 100% of Integral Axon Computer Systems for an undisclosed sum. The company is a privately held New Zealand based IT services company with gross assets of NZ$38 million.
 
Shipping group Grindrod (GND) climbed 26 cents or 1.57% to 16.79 rand.
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Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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