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Johannesburg - The JSE opened slightly firmer on Friday,
aided by buoyant resources and mining stocks, as the local bourse continued to
react to firmer international markets.
A local equity trader noted that world markets were firmer
as the economic situation in the US and Europe appeared calmer, with some
strong data coming out of the US of late.
At 09:20 local time, the JSE All Share [JSE:J203] index was
up 0.63%, with gold miners 1.03% stronger, platinum miners advancing 0.51% and
resources 0.68% stronger. Industrials were up 0.75%, banks lifted 0.19% and
financials added 0.23%.
The rand was trading at R7.61 to the US dollar, from R7.63
at the JSE's close on Thursday. Gold was quoted at $1 658.39 a troy ounce from
$1 648.99 at the JSE's previous close, while platinum was at $1 687/oz, from $1
677/oz.
The trader added that the market was still strong and was
continuing to run on the back of the recent strong data from the US. He added
that the positive sentiment was being backed by further strong economic data
from China and Germany this week.
This, he said, was particularly having a positive impact on
resources stocks.
There has also been a pullback in the oil price, which has
recently been a cause for concern.
He said the local market had started strongly, but there
could be some profit-taking later, although the underlying fundamentals were looking
good.
Dow Jones Newswires reported optimism prevailed in the
markets but with the caveat that US data continued to show promise, and more
data are due out later in the session from the US.
For Friday's opening, IG Markets is calling the FTSE up 2 points
at 5 943, the DAX up 8 at 7 152, and the CAC up 3 at 3 583.
"The better-than-expected US indicators allowed traders
to maintain a certain optimism," Saxo Bank analyst Alexandre Baradez said.
Investors' confidence was growing, said IG Index. But the
firm added that, with Europe's major indexes reaching seven-month highs,
trading at levels last seen in the summer of 2011, the upward momentum had
fizzled out over the past session. "This (though) does not mean that the
bears are in control; there is a lack of negative news, meaning that the usual
safe havens remain out of favour," added IG.
The tone on equity markets is generally still fairly upbeat,
Ole Jensen, head of Scandinavian equities at Sydbank noted. "It's been
like climbing a mountain this year and the last few months of last year. Now we
have reached a plateau, and we have to stop to breathe for a while and see what
comes next," Jensen said. He saw scope for the upward trend to continue,
but added that for that to happen, the trend of strong economic data needs to
continue.
Asian stock markets were mixed in choppy trading on Friday,
as many investors took to the sidelines ahead of the weekend, mulling
conflicting implications of stronger US economic data and slowing growth
signals from China
US stock futures were a shade lower, after markets posted
modest gains on Thursday as investors digested a batch of economic data that
suggested the recovery was picking up steam.
Paul Ashworth of Capital Economics said the various data
"provided a little more evidence that the US economic recovery is
strengthening."
The Nikkei ended up six points and the Hang Seng index in Hong Kong was flat. On Thursday night the Dow Jones industrial average ended up 58.7 points.
