Stocks AM: Firm commodity prices support JSE

    By Jacqueline Mackenzie
    Johannesburg, June 8 (I-Net Bridge) - The JSE opened cautiously firmer on Tuesday, following the lead of Asian markets which were also slightly firmer despite Wall Street closing 1% lower on Monday.
    A local trader said firmer commodities prices were helping the local market.
    By 09:20 the JSE all share index had added 0.93%, with resources 1.44% firmer, platinum miners 1.63% better and gold miners up 1.62%.    Banks were 0.77% higher, financials collected 0.57% and industrials garnered 0.57%.
    The rand was bid at 7.77 to the dollar from 7.79 at the JSE’s close on Monday. Gold was quoted at US$1,241.10 a troy ounce from US$1,232.01/oz at the JSE’s previous close while platinum was at $1,526.50/oz from $1,506.50/oz at the JSE’s last close.
    A local trader said Asian markets were firmer, although not convincingly so, but they had turned around from being in negative territory. He added that Monday’s decline on Wall Street had more to do with regulatory issues there, and not economic issues.
     Dow Jones Newswires reported that European bourses are likely to open lower, as investors remain cautious following further falls in US markets overnight.
    “Industrial names will likely come under heavy pressure after the corresponding sector in the U.S. was the biggest decliner, falling 2.6%,” Ben Potter, market strategist at IG Markets, said. “Financials will likely open in the red too after the U.S. financial sector slid another 2% after Goldman Sachs was subpoenaed in the financial-crisis investigation.”
     Wall Street futures are mixed Tuesday, after U.S. stocks fell Monday, with Bank of America, Caterpillar and Alcoa among the decliners as investors continued to worry about European sovereign debt while data on U.S. consumer spending also sparked concerns about the economic recovery.
   Asian stock markets are mostly higher Tuesday, with investors homing in only on bargains in some recently beaten down stocks.
  “Fear is still driving things. The market will continue to watch global risk barometers as the day gets underway. It’s likely the market is waiting for further data out of China and the U.S. before stepping back into play,” said David Taylor, analyst at CMC Markets.
    The Nikkei closed up 0.18% and the Hang Seng was last 0.5% better.
   
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