Johannesburg - The JSE ended in the black on Tuesday buoyed by sentiment in both Europe and the US.
By 17:00 local time, the JSE All Share [JSE:J203]
index garnered 0.59%, with platinum miners rising 1.45%, and resources up 1.40%. Gold miners however, lost 0.75%. Banks slipped 0.04%, financials eked out a gain of 0.06%, and industrials added 0.19%.
The rand was bid at 6.93 to the dollar, from 6.98 at the JSE's close on Monday. Gold was quoted at US$1 600.65 a troy ounce from US$1 603.95/oz at the JSE's previous close, while platinum was at $1 775.50/oz, from $1 774.50/oz previously.
A local trader said that US housing data, along with better than expected company earnings kept the JSE higher, having opened in the black at the start of the day. He added that a stronger rand for most of the session also helped stocks on the local bourse.
Dow Jones Newswires reported that US stocks registered sharp gains on Tuesday as encouraging earnings and a hint of housing optimism drove investors into risky assets.
The Dow Jones Industrial Average was recently up 125 points, or 1.01%, to 12 510.
International Business Machines shares hit a fresh record a day after reporting second-quarter results that exceeded forecasts. The technology company posted strength in its hardware, software and services businesses, prompting a boost to its full-year earnings outlook.
Dow component Coca-Cola's second-quarter earnings rose 18%, boosted by Coke's recent bottler acquisition and strong volume growth overseas.
Cisco Systems, the blue-chip networking-equipment maker said it would reduce its work force by 6 500 jobs, or 9%, as part of a cost-cutting plan. The cuts would result in US$1.3bn in restructuring charges over several quarters.
The rally came after stocks fell on Monday to the lowest close this month. For the moment, earnings and housing data are acting as a welcome distraction to concerns over European sovereign debt and US debt-ceiling negotiations that have roiled markets for weeks.
On the economic front, US home construction rose in June to the highest level in five months, according to the Commerce Department. Construction of homes and apartments last month increased nearly 15% from a month earlier to a seasonally adjusted annual rate of 629 000. Compared with the same month a year earlier, new-home construction in June was up 17%.
Dow component Bank of America posted its third loss in four quarters, meeting its pre-reported figures, as mortgage-related issues continued to overshadow any improvements in other operations. Shares fell 0.8%. The stock is down about 12% this month and closed on Monday in single-digit territory for the first time since May 2009.
Health-care giant Johnson & Johnson's second-quarter profit declined 20% on costs associated with its exit of a heart-device business and product recalls. Shares fell 1%.
Goldman Sachs Group shed 0.7%. Goldman's second-quarter profit of $1.05bn was significantly lower than expectations, as difficult markets led the Wall Street bank to reduce risk taking to the lowest levels in five years.
In overseas markets, European bourses were mostly higher, with the FTSE 100 Index up 45 points to 5 797, and the Paris CAC gained 49 points to 3 699 points.