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JSE higher‚ awaits Bernanke’s speech

The JSE was higher in early Friday trade‚ with platinums leading the upside‚ bouncing back after a recent sell-off‚ though the platinum price was softer due to slowing demand from China.

At 9.29am the JSE all-share index was 0.5% stronger at 35‚482.66 points and the platinum index had gained 1.26%.

The JSE. Photo: Simphiwe Mbokazi. Credit: Independent Newspapers

“The sell-off in the Asian markets overnight and the local sell-off yesterday was overdone and we are seeing a bit of a bounce back this morning‚ but we are not expecting too much of a rally for the rest of the day‚” said Francois Venter‚ equity dealer at Investec Asset Management in Cape Town.

“Investors are sitting around watching what is going to happen with the Ben Bernanke speech today. We are also seeing some opportunity takers today and some short covering as well‚” he said.

Bernanke‚ chairman of the US Federal Reserve‚ will speak at 4pm South African time. The title of his speech is‚ “Monetary policy since the crisis”.

In its morning report on Friday‚ Absa Capital pointed to recent positive US economic data‚ saying this made it unlikely Bernanke would announces a third round of quantitative easing today.

Big movers among platinum stocks on the JSE included Impala Platinum (IMP)‚ which gained 1.34% to R135.00‚ and Aquarius‚ which 5.51% to R4.80. Lonmin dipped 0.2% to R78.74. - I-Net Bridge

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