Independent Newspapers

The JSE board at Sandton, Johannesburg. Photo: Leon Nicholas

The JSE opened higher on Thursday morning following US markets up.

A local trader said that the market was lifting on the back of US markets, which welcomed the announcement by policy rate makers that they were to keep rates lower for an extended period.

At 09:13 local time, the JSE all-share index had risen 0.77%. Gold stocks jumped up 3.19%, resources strengthened 1.21%, and platinum generated 0.68%.

Banks moved up 0.80%, financials gathered 0.51% and industrials picked up 0.44%.

The rand strengthened significantly at 7.85 to the dollar from 8.03 at the JSE's close on Wednesday. Gold traded at US$1,713.26 a troy ounce from US$1,652.64 at the JSE's previous close, while platinum was quoted at US$1,583/oz, from US$1,547/oz at the previous close.

Dow Jones Newswires reported that Asian markets were mixed on Thursday, with confidence following the US Federal Reserve's decision to hold interest rates at “exceptionally low levels” for at least two years offset by profit-taking.

UK Prime Minister David Cameron will on Thursday call for bold action to fuel economic growth in Europe by boosting competitiveness, developing the single market, reducing regulation, and entering free trade deals with countries that are willing.

German Chancellor Angela Merkel, sharply criticised for her government's prescriptions of austerity as a cure for the eurozone's sovereign-debt crisis, said labour-market reforms and greater European integration also were needed to correct flaws in the makeup of the common currency.

But she gave no sign that Germany would be willing to pour more resources into the eurozone's inadequate bailout funds - a boost viewed by many analysts as essential to combat a debt crisis that has threatened to spread to Italy and Spain - and warned against putting faith in such vehicles.

On Thursday, investors will be keeping an eye on the World Economic Forum's 2012 meeting at Davos, Switzerland, which will be in full swing. It's likely that Greece will be at the top of the agenda. In addition, investors will be digesting the Federal Open Market Committee's key rate announcement and Federal Reserve Chairman Ben Bernanke's press conference.

Investors may elect to nudge stock markets higher in Europe on Thursday in following on Wall Street's gains, while bunds and gilts start mixed. The euro is mixed, spot gold is nudging higher, and oil and copper futures are climbing.

On the JSE, Anglo American (AGL) gained R3.30 or 1% to R333.30, BHP Billiton (BIL) added R2.17 at R266.80 and Sasol (SOL) lifted R5.38 or 1.37% to R398.98.

In gold stocks, AngloGold Ashanti (ANG) gathered R9.91 or 2.91% to R350.07, Gold Fields (GFI) acquired R4.30 or 3.48% at R128 and Harmony (HAR) garnered R3.09 or 3.40% at R93.90.

Platinum miner, Amplats (AMS) secured R3.95 to R547.

Lonmin (LON) secured R1.06 cents or 0.82% to R130.37. The company released its Q1 2012 production report & interim management statement on Thursday and said that platinum metal in concentrate and refined platinum production increased by 3.5% and 24.3% respectively on a year-on-year basis.

In industrials, Mondi Plc (MNP) collected 60 cents or 0.96% at R63 and Barloworld (BAW) moved up R1.07 or 1.25% to R86.97.

Technology stock Reunert (RLO) was 88 cents or 1.40% higher at R63.88.

In banking and financials, Absa (ASA) rose R1.70 or 1.16% to R148.20 and Sanlam (SLM) acquired 35 cents or 1.17% at R30.24.

In retail, Shoprite (SHP) gained R1.67 or 1.27% to R132.95.

Media group Naspers (NPN) took up R4.75 or 1.24% at R386.75. - I-Net Bridge