Johannesburg - The JSE ended firmer on Tuesday, given strong support by resources, which rose amid dissipating investor concerns over political instability in Egypt and positive company earnings in the US.
The JSE all share index closed 1.40% higher, led by resources which added 2.14% and gold miners which added 0.98%. Platinum miners were also 0.98% higher, while industrials lifted 0.89%. Financials were 0.89% higher, and banks rose 0.34%.
The rand was bid at 7.15 to the dollar, unchanged from the JSE's close on Monday. Gold was quoted at US$1 330.68 a troy ounce from US$1 328.30/oz at the JSE's previous close, while platinum was at $1 804/oz from $1 780.50/oz before.
"We've been up the whole day. The big gain was resource stocks as a result of firmer commodity prices. The unrest in Egypt is starting to take less centre stage. Earnings [in the US] continue to beat forecasts," says a local trader.
"Across the board we're seeing investors get back to equities after the Egypt scare," the trader added.
Dow Jones Newswires reports that US stocks climbed on Tuesday, buoyed by bellwether earnings reports, as traders largely looked past the unease rippling through the Middle East.
On the first day of February trading, the Dow Jones Industrial Average rose 65 points, or 0.5%, to 11 957. Boosting the measure, Pfizer rose 2.4%, after the drug company's fourth-quarter profit more than tripled, though the company gave a 2011 earnings forecast below analysts' expectations. Pfizer
also announced a new share-repurchase programme of up to $5bn of its common stock.
The Nasdaq Composite rose 0.9% to 2 726. The Standard & Poor's 500-stock index gained 0.8% to 1 297, led by the materials sector.
The market's focus drifted away from the political turmoil in Egypt, even as it spread throughout the region.
Earnings captured the spotlight on Tuesday. Shares of United Parcel Services, a package delivery company seen as a bellwether for the economy, climbed 3.6% after its fourth-quarter profit jumped 48% as revenue and margins surged and the company forecast record full-year earnings. UPS also boosted its buyback programme and flagged further expansion in emerging markets.
Shares of Archer Daniels Midland surged 7% after its fiscal second-quarter earnings rose 29% as the grain-processing giant saw improved demand and pricing for agricultural commodities.