Strong Dow drives JSE higher

Johannesburg - South African stocks were 440 points higher in early trade on Friday with resources and gold counters leading the upside in the wake of a firm close on Wall Street.

By 09:20, the JSE all share index had added 1.99% with resources gaining 2.92%. Gold counters put on 2.96% and platinum miners were up 2.59%. Banks advanced 1.18%, while financials and industrials rose 1.35% and 1.26% respectively.

The rand was last bid at R7.98 to the dollar from R8.03 when the JSE closed on Thursday. Gold was quoted at $944.80/oz a troy ounce from $935.40/oz at the JSE's last close, and platinum was at $1 205.50/oz, from $1 184.50/oz at its previous close.

"We are black across the board, resources and gold stocks are leading the upside," an equities trader said.

"It's a follow-on from Wall Street. Asia was also firmer, although you would have expected them to be higher up.

"The S&P has held above this 880 level. If it continues to do so, it is possible that we may see more upside. It will however remain skittish in the market into next week.

"We will have to see what will happen, maybe we will see some profit taking at these high levels as the day progresses," he said.

Dow Jones Newswires reports that US stocks staged a broad rally as Bed Bath & Beyond rallied on a profit report, Sallie Mae spiked on an analyst upgrade and shares of shoe maker Nike were beaten down.

The DJIA gained 172.54 points, to 8472.40, snapping a four-day losing streak. The S&P 500 index added 19.32, to 920.26. The Nasdaq Composite Index added 37.20, to 1829.54.

Stocks climbed even though data showed that the number of US workers filing new claims for jobless benefits jumped last week. Thursday's gains came after a big drop for stocks early in the week.

The stock market seems to be changing its mind every couple days about when it thinks the economy is going to bottom, said Uri Landesman, head of global growth strategies at ING Investment Management. "Investors wanted to see the glass as half full [Thursday]. They were taking pieces of news and interpreting it positively," he said. "It's a schizophrenic market. I'm not sure we can say: Happy days are here again."

Asian share markets are mostly inching higher on Friday after the strong showing on Wall Street, with energy stocks supporting around the region and Suzuki and Bridgestone on the rise in Tokyo.

Japan's Nikkei ended 0.8% higher and Hong Kong's Hang Seng was last up 1.2%.

European share prices are likely to rally, catching up with markets elsewhere. But the usual pre-weekend profit taking could set in during the day.

- I-Net Bridge