Johannesburg - The JSE was up 534 points in early trade on Friday supported by resources which moved sharply higher on news of the BHP Billiton, Rio Tinto joint venture.
By 09:12, the JSE all share index had gained 2.34%, with resources adding 4.81%, platinum counters 2.55% firmer and gold miners collecting 0.64%. Banks edged up 0.32%, financials were up 0.75% and industrials were flat, up 0.10%.
The rand was last bid at R8.02 to the dollar from R8.04 when the JSE closed on Thursday. Gold was quoted at $980.85/oz a troy ounce from $974.28/oz at the JSE's last close, and platinum was at $1 287.50/oz, from $1 290.50/oz at its previous close.
"We are up sharply this morning. Resources are being supported by the news of the joint venture between BHP Billiton and Rio Tinto," a local trader said.
"Resources are looking very strong and so are these platinum counters. The rest of the market is also looking strong.
"We had two days where the market fell and now we are seeing strong bargain hunting. US futures are also up at the moment. So, it looks like we are set for a better day," she said.
Dow Jones Newswires reports that US stocks closed higher on Thursday, as the trend of surging commodities prices was renewed, fuelling gains for companies such as Alcoa and Chevron, while an analyst note spurred buying in the financial sector and broader market.
Oil price on a roll
Setting off the session, RBC Capital said banks are at the beginning of a new, multiyear bull market, marking the most positive commentary on the banking sector by a major investment bank research department in several months. The firm raised its rating on the banking sector to overweight from sector perform, saying investors should own bank stocks because banks' revenue and earnings will be driven higher by wider net interest margins and lower credit costs.
Overall, the DJIA gained 74.96 points, to 8750.24, marking its fifth increase in six sessions. The index is off just 0.3% for the year-to-date.
The Nasdaq Composite Index rose 24.10 points, to 1850.02, while the Standard & Poor's 500 gained 10.70, to 942.46. The S&P 500 was helped by a 4% gain in its financial sector.
Also behind the indices' gains was another round of buying for energy and materials stocks after both of those sectors dipped on Wednesday. Notably, oil prices have been on a tear lately, doubling from their lows set in mid-February. Crude closed up $2.69 to $68.81 a barrel in New York, marking a seven-month closing high. Prices were helped by Goldman Sachs's
move to lift its price target for the commodity to $75 a barrel.
Asian share markets were higher on Friday as optimism remained about a rebound in global demand. Australian miners gained after Rio Tinto walked away from a deal with Aluminium Corp of China, announced a capital raising and unveiled a joint venture with BHP Billiton.
Japan's Nikkei ended 1% higher and Hong Kong's Hang Seng was last down 0.2%.
Europe's leading stock markets are set to open slightly higher as investors await more evidence of a US labour market bleeding jobs.
- I-Net Bridge