Money SA economy
Firmer Dow futures and stronger banks brightened the picture for local equities during the morning session on Thursday.
A key underpin was that the world's largest resources group, BHP Billiton had turned around to positive territory as investors found the cheap price level attractive after news of a renewed bid for a top fertiliser company.
A positive close on Wall Street overnight provided support to the local market in early trade, and the improvement continued as the futures followed that lead.
"We are chasing the Dow, which is up around 0.5% and we are following suit," said a local dealer. "The 1.20% turnaround for BHP was significant, as dealers found the price level attractive "even if all the offers are taken off the table".
BHP has announced an all-cash offer for Potash, valuing it close to $40 billion, and after its initial overture was rejected, the company has now taken the offer directly to shareholders.
By 12.30pm local time the JSE all share index was up by 0.71%, with banks gaining 1.09% and financial counters 0.77%. Industrials were up 0.76% and resources 0.59%, while gold miners added 0.32% and platinum stocks fell 0.88%. Gold was quoted at $1,228.93/oz from $1,221.49/oz at the JSE's previous close, while platinum was at $1,536.50/oz from $1,527.50/oz before.
On Wall Street on Wednesday, retailers led US stocks slightly higher as better-than-expected earnings from Target lifted fellow department-store chains Kohl's and J.C. Penney.
Dow Jones Newswires reported that most Asian stock markets traded higher on Thursday, with hopes for further monetary easing measures bolstering Japan.
On the JSE, Anglo American added R1.94 to R276.50, but BHP Billiton gained 250 cents to R212.55 and Sasol shed 65 cents to R287.50.
