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Johannesburg - The JSE ended in the black on Thursday amid a continuing rally in commodity prices and as markets put less attention on geopolitical tensions in Egypt and some Arab states.
The JSE all share index was up 0.95%, with resources rising 1.35%.
Industrials advanced 0.91%, as platinum miners climbed 0.78% and banks collecting 0.52%. Financials closed 0.13% higher, but gold miners gave up 0.17%.
The rand was trading at 7.25 to the dollar from 7.14 at the JSE's close on Wednesday. Gold was quoted at US$1 329.85 a troy ounce from US$1 335.69/oz at the JSE's previous close, while platinum was at $1 822.50/oz from $1 832.50/oz before.
A local trader said it was a "very strong day" especially in resources.
He noted that mining stocks had also performed on the back of a weaker rand.
"Inflation fears are also sending investors to resources and commodities," the trader added.
Dow Jones Newswires reports, however, that US stocks opened lower on Thursday, weighed by disappointing earnings from drug maker Merck and jitters over the escalating violence in Egypt.
The Dow Jones Industrial Average shed 14 points, or 0.1%, to 12,028 in early trading. Leading the Dow's declines, Merck fell 3.1% after swinging to a fourth-quarter loss. While earnings and revenue topped Wall Street's expectations, the drug maker's forecast for full-year adjusted earnings fell below analysts' predictions.
The Nasdaq Composite edged down 0.1% to 2,748. The Standard & Poor's 500-stock index slipped 0.1% to 1 302, weighed by its healthcare and energy sectors.
The market's early mood was subdued as clashes between protesters and supporters of the Egyptian regime spilled over into violence on Thursday. As tension escalated, the price of oil rose above $91 a barrel.
Labour data were a bright spot, one day before the government's key monthly payrolls report. The number of US workers filing new claims for unemployment benefits sharply fell by 42 000 to 415 000 in the week ended January 29, the US Labour Department said in its weekly report. Economists had expected a drop of 31 000 to 423 000. The previous week's figures, which were distorted by snow that hit four southern states, were revised to 457 000 from 454 000.
Retailers also strengthened as reports from last month showed shoppers largely shrugged off bad weather to help January same-store sales top expectations.
Also, non-farm business productivity rose at a 2.6% annual rate in the fourth quarter, surpassing analysts' expectations for a 2.1% increase. The report also showed that unit labour costs - a key gauge of where prices are heading - fell at a 0.6% annual rate last quarter, surprising analysts who had forecast a 0.1% gain.
