Stocks recovered from their melancholy during the afternoon session on Tuesday as poor home sales data in the US spurred a commodities fightback. Lower commodity prices earlier in the day on a strong dollar had seen the local market comfortably in the red.

By 5pm, the all share index was 1.20 percent in the green with resources up a handsome 2.01 percent. The gold index garnered 1.45 percent and platinum 2.80 percent. Industrials added 0.54 percent, but banks lost 0.49 percent. Financials, though, eked out 0.35 percent.

The rand was bid at 7.78 to the dollar from 7.72 when the JSE closed on Monday, while gold was quoted at $828.20 a troy ounce from $822.35/oz at the JSE's last close. Platinum was last at $1429/oz from $1427 overnight.

"After the US data, commodity prices rallied and the dollar weakened. Gold jumped, but the rand stayed weak and so resources stocks like Anglo moved off their lows and platinum rallied," explained senior dealer from Afrifocus, Neville Lahner.

"The turnaround in our market from their earlier lows was therefore due to the commodity price rally," he said.

New single-family home sales rose 2.4 percent in July, to an annual rate of 515,000, the Census Bureau reported on Tuesday. Economists surveyed by Dow Jones Newswires had expected sales at 520 000. Census revised the June data down sharply, to 503 000, from 530 000.

Home prices declined 4.8 percent from the second quarter of 2007, the largest year-over-year drop recorded by the purchase-only index's 17-year history.

On the JSE, resource giant Anglo American was up 2.99 rand to 402.99 rand while BHP Billiton managed to gain 3.78 percent to 240.50 rand.

Global resources group Rio Tinto said on Tuesday that rival BHP Billiton's pre-conditional offer to acquire all the shares in Rio Tinto has now been referred to a second phase review by the EU competition authorities.

"Our Boards rejected this offer on the basis that it undervalued the company and its prospects, and we now await the outcome of the EU and other important regulatory reviews," said Rio Tinto Chairman Paul Skinner.

Synthetic fuels maker Sasol collected 3.90 rand to 414 rand.

Gold miner AngloGold Ashanti was two rand better at 205 rand, with Gold Fields adding 2.60 percent to 69 rand.

Among platinum miners Anglo Platinum charged up by 3.81 percent to 924.99 rand and Impala Platinum gained 2.03 percent to 217 rand.

Mvelaphanda Resources, the mining investment and exploration company, on Tuesday said it expected basic earnings of between 85 cents per share and 95 cents per share for the year end June 2008. Headline earnings were expected to come in at between 90 cents per share and 100 cents per share. The share ended the day up by 2.40 percent at 44.02 rand.

Liberty International had a good day to lift off by 6.84 percent to 139 rand. It was reported yesterday by a research house that US-listed Simon Property Group, the second-largest global retail property trust (after Westfield), had acquired 3.45 percent of Liberty International. Its market cap is over £10.7-billion pounds, or more than three times Liberty International's.

Services company Bidvest lost 90 cents by the close - after earlier busking the downtrend - to end at 107 rand, while construction group Group 5 lost 45 cents from higher losses earlier to 53 rand.

Brewer SABMiller gained 1.92 percent to 163.85 rand and Richemont added 2.46 percent to 44.20 rand. Remgro, though, lost one rand to 184.25 rand.

Mobile carrier MTN lost 1.28 percent to 112 rand while Telkom was off by a marginal 25 cents to 135.25 rand.

Telkom said on Tuesday that talks are ongoing with a consortium that is considering making an offer for the fixed-line telephone operator.

Telkom recently received a letter from a consortium comprising Mvelaphanda Holdings (Proprietary) Limited, affiliated funds of Och-Ziff Capital Management Group and other strategic funders, stating that it is considering making an offer for the entire issued share capital of Telkom subject to a number of pre-conditions, inter alia, confirmation by the Telkom Board that it will unbundle Telkom's entire 50 percent stake in Vodacom as part of the offer.

Tiger Brands was 65 cents weaker at 126.35 rand after the unbundling dust of Adcock Ingram settled. Yesterday, approximately 172.6 million Adcock Ingram ordinary shares were listed on the Main Board of the JSE in the "Pharmaceuticals" sector. Adcock Ingram's share price opened at 35 rand yesterday and closed today at 34.70 rand.

Banking group Standard Bank retreated by just 32 cents to 85 rand and Nedbank lost 54 cents to 101.21 rand.

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