JSE up on global sentiment

The JSE remained on the front foot in midday trade on Wednesday, boosted initially by better than expected GDP data out of China and buoyed Dow futures.

By noon local time, the JSE all-share index was up 0.62%, led by gold miners, which were up 2.37%, and resources, rising 0.93%. Platinum miners added 0.49%, while industrials rose 0.69%. Banks however, lost 0.34% while financials were off 0.23%.

The rand was bid at 6.85 to the dollar, from 6.88 to the dollar at the JSE's close on Tuesday. Gold was quoted at US$1,570.38 a troy ounce from US$1,551.31/oz at the JSE's previous close, while platinum was at $1,747/oz, from $1,728.50/oz previously.

A local dealer said that, globally, the mood had improved following better than expected GDP data out of China during the Asian session. He noted that Dow futures were trading in the black, while most markets in Europe were marginally higher.

The dealer highlighted US Federal Reserve chairman Ben Bernanke's testimony to Congress later in the day as key for markets.

Dow Jones Newswires reported that European stocks remained just in the black, despite weaker-than-expected euro-zone data, which showed industrial output rose by 0.1% in May from April. “All in all, euro-zone industrial production seems to be on a clear moderating trend in the second quarter, confirming the idea of GDP growth at about 0.3% from 0.8% in the first quarter,” said Newedge.

The FTSE was recently 0.36% higher at 5,890, while the Paris CAC was up 0.34% at 3,786.

The slight gains followed marginally better-than-expected Chinese second-quarter GDP, which rose 9.5% from a year earlier, compared with 9.7% growth in the first quarter. It helped to lift the Shanghai Composite index up 1.5% in Asia on Tuesday, while Hong Kong's Hang Seng index added 1.2%. Elsewhere, Japan's Nikkei Stock Average was up 0.5%, while South Korea's Kospi Composite was 0.9% higher.

US stocks were expected to open higher on Wednesday, with traders seeking value after the recent sell-off. ETX Capital called the Dow Jones Industrial Average up 64 points at 12,510. “The sell-off was exaggerated, plus debt yields have come off in Europe,” suggesting concerns about European debt contagion may have been overdone, said ETX's Manoj Ladwa. ETX noted there was some optimism for forthcoming earnings from US companies such as Google, which reported on Thursday, but cautioned that signs of top-line growth, rather than improved margins, were key.

Still to come, the US import price index is at 12:30 GMT and Bernanke's testimony to Congress is at 14:00 GMT.

On the JSE, Anglo American (AGL) gained 2.19 rand to 331.50 rand, BHP Billiton (BIL) advanced 4.07 rand or 1.54% to 267.57 rand, but Sasol (SOL) fell 2.80 rand to 354.48 rand.

Gold miner Gold Fields (GFR) improved 2.24 rand or 2.19% to 104.67 rand, along with Anglo Gold Ashanti (ANG) up 6.65 rand or 2.29% to 297 rand. Harmony (HAR) pocketed 2.97 rand or 3.27% to 93.67 rand.

Diversified miner African Rainbow (ARI) rose 1.45 rand to 187.99 rand.

Industrials group British American Tobacco (BTI) slipped 3.50 rand or 1.14% to 304.50 rand, but SAB Miller (SAB) profited 3.50 rand or 1.42% to 257.60 rand. Tiger Brands (TBS) lifted 1.45 rand to 204.69 rand.

Pretoria Portland Cement (PPC) was 77 cents or 2.86% better off at 27.65 rand.

Telecommunications group MTN (MTN) pocketed 1.59 rand or 1.12% to 143.79 rand.

Retailer Massmart (MSM) gained 3.53 rand or 2.48% to 145.85 rand. - I-Net Bridge