Money SA economy
The JSE opened firmly in the black on Monday morning boosted by the results of European bank stress tests late Friday, which indicted that only a handful of relatively small banks in the region would be required to raise new capital to weather a potential economic downturn.
By 09.16am local time the JSE all share index had risen 0.89%, as resources gained 1.19%, platinum miners climbed 1.17%, and gold miners added 1.20%. Banks picked up 0.94%, financials profited 0.83% and industrials firmed 0.59%. Gold was quoted at $1 193.58 a troy ounce from $1 190.22/oz at the JSE's previous close, while platinum was at $1 552.50/oz from $1 542/oz before.
A local trader said: "Markets are benefiting from the results of stress tests done on European banks on Friday. The Dow reacted positively to the news when it came out, with Europe and the local bourse following suit this morning. There is some concern that the tests aren't stringent enough, but that is more a longer term worry."
He added that the local bourse had not reacted to the strong rand.
European stock markets opened a touch higher Monday, as market participants reacted with relief to Friday's release of European bank stress tests. However, these gains could be limited amid a degree of scepticism over the rigor of the tests, Dow Jones Newswires reported.
On Wall Street Friday, stocks jumped as investors moved past the results of European bank stress tests to focus on some better-than-expected earnings.
The strength on Wall Street helped Asian stock markets move mostly higher Monday.
On the JSE, Anglo American plc rose R3.33 or 1.15% to R291.70, and BHP Billiton gained R2.48 or 1.10% to R227. Sasol improved R4.07 or 1.39% to R296.07.
