Johannesburg - South African stocks ended firmer on Thursday amid better than expected initial jobless claims data, which
boosted US market sentiment.
A local trader noted that eyes would turn to US non-farm payrolls data expected out tomorrow as international markets approached key resistance levels.
The local bourse had opened softer, but recovered throughout the day as the euro perked up against the US dollar, lifting metals prices off their lows.
By 17:00 the JSE all share index added 0.33%, with gold shares 0.21% stronger, resources were flat, up 0.03%, but platinum miners declined a marginal 0.12%. Banks gained 0.80%, along with financials 0.79% better, and industrials improved 0.39%.
The rand was bid at R7.44 to the dollar, from R7.47 at the JSE's close on Wednesday. Gold was quoted at $1 134.18 a troy ounce from $1 126.74/oz at the JSE's last close. Platinum was at $1 573.50/oz from $1 565/oz at the
JSE's last close.
A local equities dealer said: "We saw the market react to slightly better than expected initial jobless claims data out in the US.
"While the figures were only slightly better than expected, eyes will turn to jobless claims data in the US tomorrow as international markets are approaching key resistance levels, and the data might provide a good indication as to which way the markets will turn."
The trader noted that rand gains were not doing local shares any favours however, he said financials performed well, suggesting the market was not unpleased with Standard Bank's results.
Dow Jones Newswires reported US stocks opened higher on Thursday, led by consumer stocks as retailers' February sales rose more than expected, while better-than-forecast reports on jobs and productivity also encouraged investors.
The Dow Jones Industrial Average was up 32 points, or 0.3%, to 10428.
Investors were pleasantly surprised on Thursday as a number of retailers, especially those geared to teen shoppers, reported improved sales in February, thanks to easy year-ago comparisons and despite winter storms that crippled large swaths of the country.
Also boosting sentiment, the Labour Department said in its weekly report on Thursday that initial claims for jobless benefits fell by 29 000 to 469 000 in the week ended February 27. Economists surveyed by Dow Jones Newswires
expected initial claims to decrease by 23 000. Total claims lasting more than one week, meanwhile, fell to a level not seen since January 2009.
Separately, the Labour Department said non-farm business productivity rose by a seasonally-adjusted annual rate of 6.9% in the last quarter of 2009. Economists polled by Dow Jones Newswires forecast a 6.5% increase in output per hours worked.
Unit labour costs, a measure of what it costs firms to pay workers for a single unit of output they produce, fell at a 5.9% annual rate in the last three months of 2009. That compares with an original estimate of a 4.4% decline and expectations for a 4.9% drop.
- I-Net Bridge