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Greek optimism buoys JSE

Johannesburg - The JSE rallied on Tuesday as confidence returned on the back of expectations that a resolution to the Greek debt crisis was likely, lifting stock markets around the world.

Resources counters led the market rebound, with investors seeking bargains, including the likes of Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL], a local trader said.

By 17:00 local time, the JSE All Share [JSE:J203] index was up 1.12%, with resources firming 2.17%, gold miners gaining 0.22 and platinum miners rising 0.86%. Industrials also added 0.42%, while financials added 0.76% and banks were 0.79% higher.

The rand was last bid at 6.73 to the dollar from 6.77 at the JSE's close on Monday. Gold was quoted at US$1 546.25 a troy ounce from US$1 538.61/oz at the JSE's previous close, while platinum was at $1 745.70/oz, from $1 729.50/oz previously.

The local trader said Greece and better than expected US housing data boosted market sentiments. He added that he did not believe this rally was a "dead cat bounce".

Dow Jones Newswires reported that US stocks rose as investors overlooked weak US housing data and bet Greek Prime Minister George Papandreou would win a confidence vote later on Tuesday, a major step toward averting a sovereign debt default.

The Dow Jones Industrial Average gained 70 points, or 0.6%, to 12 151 in early trade.

Investors are closely watching how the Greek government attempts to drum up support for its economic reforms, aimed at tackling the country's financial problems.

Greece is expected to get its next quarterly instalment of bailout money as long as the country's parliament passes a contentious package of budget measures. European finance ministers also showed modest signs of progress toward a broader agreement for a bigger package of aid to Greece for coming years.

Greek optimism overshadowed US housing data showing that sales of existing homes fell last month to the lowest level in six months. The National Association of Realtors report shows the slumping housing sector remains stuck in a deep funk during the crucial spring selling season.

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Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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