JSE holds on to early gains

The JSE hung on to its morning gains by midday on Thursday tracking positive global sentiment, kick-started by large gains on Wall Street overnight which saw the Dow break through the key 10 000-point mark.

A local trader noted that markets were also buoyed by comments from the International Monetary Fund that a double-dip on the global economy was 'very unlikely'.

By noon local time the JSE all share index had gained 0.46% as resources added 0.57%, but platinum miners were flat. Gold producers were 0.71% higher. Banks grew 0.76%, financials increased 0.66% and industrials firmed 0.26%. Gold was quoted at $1 201.68 a troy ounce from at $1 194.07/oz at the JSE's previous close, while platinum was at $1 528/oz from $1 515.50/oz at the JSE's last close.

A local trader said: "The local bourse is tracking positive global sentiment after the IMF said that it was unlikely that we would experience a double dip. Global markets are still profiting from strong gains on the Dow overnight, which flowed into Europe and Asian markets."

The trader noted a 4% rise in Nedbank's shares amid rumours that HSBC is interested in acquiring Nedbank. Earlier Sky News reported that HSBC was in the early stages of assessing a bid for Nedbank.

HSBC Holdings, Europe's biggest bank, declined on Thursday to comment on a report that it is in the early stages of evaluating a bid for Nedbank.

"We don't comment on speculation," an HSBC spokesperson said by telephone from London.

Nedbank's parent, international long-term savings group Old Mutual plc, also declined to comment on what it called "market rumours or speculation".

Dow Jones Newswires reports that US stocks are called to open slightly lower Thursday, taking a breather from the mammoth gains in the previous session, which saw the Dow Jones Industrial Average back above the key 10 000 level.

European stocks rose Thursday, led higher by banking shares as investors took heart from the details of the euro-zone bank stress tests, released late Wednesday.

On the JSE, Anglo rose R1.80 to R275.25, BHP Billiton gained R1.80 to R209 and Sasol picked up R1.13 to R279.53.