The JSE remained in the black at midday on Thursday as banking stocks remained in favour, and resources, which were weaker earlier, bounced into positive territory.

By 11.56am, the all share index was 0.69 percent firmer, lifted by a 2.45 percent gain in banks and a 1.13 percent increase in financials. Resources firmed 0.49 percent, the gold mining index collected 2.10 percent and the platinum mining index added 1.10 percent. Industrials were 0.79 percent higher.

The rand was bid at 7.57 to the dollar from 7.52 when the JSE closed on Wednesday, while gold was quoted at $927.20 a troy ounce from $927.10 at the JSE's last close.

Dow Jones Newswires reports that US stock futures were moderately weaker on Thursday ahead of more data on the troubled housing market and another wave of earnings, though Amazon.com Inc is expected to be a bright spot after its earnings report.

S&P 500 futures fell five points to 1277.40 and Dow industrial futures fell 40 points. Nasdaq 100 futures edged up a point to 1850.00 after the Amazon.com report.

In London, the FTSE was down 21 points.

JSE traders said resources stocks had turned around during the course of the morning.

"When you look at Kumba's results this morning, and Billiton's production report yesterday, you get the sense of where the demand for commodities is coming from. Prices will only come back on significantly reduced demand," said a local analyst.

He added that demand continues to underpin these stocks.

Demand for banking stocks continued on Thursday. The analyst pointed out that banking stocks had bounced from a very low position and they need a bit of momentum, in the form of good news, to get back to the higher levels seen late last year. "That can only be in the form of lower inflation and lower interest rates," he added.

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