A continued rally by global markets pushed the JSE up 435 points on Tuesday as participants sought bargains in what was seen as an oversold market.

However, gold counters remained under pressure as players took profits on the back of a weaker gold price.

By 5pm, the JSE all share index had added 2.40 percent, with resources gaining 2.83 percent and platinum miners collecting 1.84 percent. However, gold counters lost 3.15 percent.

Banks jumped 6.33 percent, financials put on 4.55 percent and industrials firmed 0.77 percent.

The rand was last bid at 10.35 to the dollar from 10.57 when the JSE closed on Monday. Gold was quoted at $903.35/oz a troy ounce from $927.25/oz at the JSE's last close, and platinum was at $1038/oz from its previous close of $1058/oz.

"It's very nice to see markets up for a change," a local trader said.

"We moved in line with Dow futures which were up the whole day today. Stocks have been at very oversold levels and we are seeing a relief rally and bargain hunting.

"Banks are very strong even after FirstRand's results. Resources are also rallying nicely. However, gold stocks remain under pressure as everyone takes profits.

"Hopefully we keep up the gains and continue rallying in tomorrow's session as well," she said.

Dow Jones Newswires reports that optimistic comments from Federal Reserve Chairman Ben Bernanke helped spark some confidence in the financial markets on Tuesday as banks led US stocks in an early-session rally.

During a speech to the Council on Foreign Relations, Bernanke said it was important to address the valuation of illiquid assets. He said he wouldn't support suspension of "mark to market" rules. Still, banks are looking for any leeway in accounting for illiquid - often called toxic - assets such as mortgage bonds, and investors in banks were encouraged by Bernanke's statement.

"Bernanke said the magic words - that the Fed was considering looking at accounting standards," said Fred Dickson, market strategist at DA Davidson.

At the time the JSE closed, the DJIA had last gained 4.16 percent.

Back in Johannesburg, Anglo American was up 6.15 percent to 152.85 rand and BHP Billiton firmed 6.24 percent to 179 rand.

Petrochemicals group Sasol added 1.44 percent to 250.01 rand.

Paper group Sappi rose 7.41 percent to 14.50 rand and rival Mondi put on 8.56 percent to 26 rand.

Kumba Iron Ore weakened 2.70 percent to 144 rand.

Gold miner AngloGold Ashanti was off 1.40 percent to 312.40 rand, Gold Fields gave up 3.22 percent to 111.30 rand and Harmony lost 6.86 percent to 108.70 rand.

It was announced earlier that ratings agency Fitch Ratings had downgraded Harmony Gold Mining Company's long-term foreign currency issuer default rating to 'BB' from 'BB+' and its South African national long-term rating to 'BBB- (BBB minus)(zaf)' from 'BBB(zaf)'.

The outlooks on both ratings are stable.

The ratings agency said the rating actions reflected its view that, over the next three to five years, rising operating costs, particularly in respect of employee wages, will erode Harmony's long-term competitiveness and profitability.

Platinum miner Anglo Platinum weakened 1.54 percent to 415.50 rand but Impala Platinum gained three percent to 128.75 rand and Lonmin jumped 13.93 percent to 181.73 rand.

In diversified miners, Exxaro gave up 3.10 percent to 62.50 rand but Hulamin collected 3.96 percent to 10.50 rand.

Among industrials on the JSE, brewer SABMiller added 1.48 percent to 136.06 rand, Barloworld gained 3.81 percent to 27.51 rand, Bidvest rose 1.86 percent to 78.94 rand, Imperial collected 1.10 percent to 43.98 rand and British American Tobacco jumped 3.67 percent to 245.82 rand.

However, Famous Brands gave up 1.45 percent to 13.60 rand.

Banker FirstRand was barely changed, up 1 cent, to 11.36 rand. The bank earlier said that it saw diluted headline earnings per share decline by 19 percent from 107.4 cents to 87.3 cents for the six months ended December. Diluted normalised earnings reflected a 25 percent decrease from 108.9 cents to 81.2 cents per share. The group declared an interim dividend of 34 cents per share, which was 23 percent lower than the 44.25 cents declared for the previous comparable half-year.

FirstRand said the operating environment for the six-month period had remained extremely difficult, characterised by further declines in asset prices, continued market volatility and a deteriorating economic outlook, both locally and internationally.

It also announced that it had received approval from the South African Reserve Bank and the Bank of Zambia for the establishment of a new full service bank in Zambia,

Standard Bank was up 10.98 percent to 69.75 rand, Nedbank added 6.55 percent to 69.90 rand and Absa firmed 4.03 percent to 80 rand.

Financial services group Old Mutual added 5.42 percent to 5.06 rand, Sanlam rose two percent, to 14.78 rand and Investec put on 12.32 percent to 30.55 rand.

African Bank gained 7.97 percent to 21 rand.

Media group Caxton was down 1.90 percent to 10.30 rand but Naspers was up 1.18 percent to 140 rand and Kagiso Media put on 2.27 percent to 11.25 rand.

Retailer Woolies collected 3.48 percent to 10.40 rand, Pick n Pay put on 4.91 percent to 29.50 rand, Foschini was up 4.27 percent to 36.62 rand and Mr Price strengthened 3.44 percent to 22.55 rand.

Liberty International rose 4.74 percent to 44 rand.

Construction group Aveng collected 1.89 percent to 27 rand and Basil Read was up 1.42 percent to 10.75 rand but Murray & Roberts weakened 2.56 percent to 38 rand and WBHO lost 1.80 percent to 82 rand.

Cement manufacturer Pretoria Portland Cement gave up 4.01 percent to 26.09 rand.

Tile manufacturer Ceramic Industries was off 1.22 percent to 73.39 rand. It earlier reported an 18.3 percent decline in headline earnings per share to 376.1 cents for the six months ended January from 460.2 cents a year ago. An interim dividend of 110 cents per share was declared. Revenue was 2.8 percent higher at R720.8-million, while operating profit was 17.6 percent lower at R92.8-million.

Distribution and Warehousing Network fell 2.99 percent to 6.50 rand. It earlier reported an 11 percent increase in headline earnings per share to 87.1 cents for the six months ended December 2008 from 78.1 cents a year ago. It is policy to declare a distribution to shareholders at the financial year-end, so no interim distribution was declared.

The company said despite the impact of the downturn in the economy, it delivered satisfactory results and continued to show growth, albeit at lower levels. Revenue increased by 15 percent to R2.219-billion and operating profit increased by six percent to R235-million.

Among telecommunications groups, MTN Group eased 25 cents to 84.15 rand and Telkom was down 1.37 percent to 97.15 rand.

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