Raith Rovers richly deserved their first points in league competition this year. They started the stronger side, and should have gone ahead after five minutes when Paul McManus was placed in front of goal, but his weak shot was easily saved by Gary McGlynn.
One minute later it was Alloa's turn to miss a golden opportunity when a perfect Paul Mortimer cross was missed by Iain Nicolson standing only six yards out from an open goal.
Raith Rovers took a well-deserved lead in the 13th minute when poor Alloa defending saw a ball fall at the feet of Todd Lumsden, and from 25 yards out he fired home an unstoppable shot.
Alloa equalised after 30 minutes when James Stevenson stood over a free-kick 25 yards out and rifled the ball past Alistair Brown in the Raith Rover goal.
From this encouragement, Alloa stepped up the pace of their play and had the Raith defence struggling to keep out their relentless attack.
Alloa, however, suffered a major blow in the 42nd minute when Raith Rovers were awarded a very soft penalty when referee Kevin Toner judged Chris Townsley to have fouled Paul McManus. After all the commotion had settled, veteran striker Eddie Annand stepped up and calmly slotted the ball past Gary McGlynn.
Alloa started the second half strongly and had chances when Jamie Stevenson in the 47th minute watched a shot go narrowly over the bar, and a golden opportunity after 49 minutes when Nicolson split the Raith defence with a pass to Ross Hamilton, but Hamilton wasted the opportunity when he stumbled as he was about to shoot into an open goal.
Alloa believed they had equalised in the 82nd minute when substitute Andy Brown had the ball in the net, but the far side linesman indicated that John Ovenstone had his foot in the field of play when he took the throw-in that led to the goal.
Alloa suffered in the 89th minute when their goalkeeper Gary McGlynn was red-carded for a foul on substitute Brian Fairbairn.
In the end Raith Rovers deserved to take the points.