The JSE ended an erratic session slightly higher on Tuesday, recovering from worse levels as investors took disappointing earnings from Goldman Sachs and IBM, and weak US housing starts data in their stride.

The JSE all share index ended flat (+0.07 percent). Key indices were mixed, with resources gaining 0.41 percent, and platinum miners adding 0.52 percent. But gold miners slumped 0.67 percent, and banks lost 0.48 percent. Financials weakened 0.34 percent, and industrials were flat (-0.04 percent).

The rand was bid at 7.59 to the dollar, from 7.64 at the JSE's last close. Gold was quoted at $1192.45 a troy ounce from $1179.78/oz at the JSE's previous close, while platinum was at $1504.50/oz from $1503.50/oz/oz before.

A trader said the domestic market reversed earlier losses and closed in positive territory despite dismal earnings reports from the likes of Goldman Sachs Group, IBM and Texas Instruments.

Describing trade as erratic, the trader said the market also ignored a 5 percent drop in US housing starts to a seasonally adjusted annual rate of 549,000 in June. Economists had been expecting a 3.2 percent decline.

Dow Jones newswires reports that US stocks tumbled on Tuesday as technology stocks led a broad decline, following a round of disappointing quarterly reports.

Weaker-than-expected revenue and sales from companies including Goldman Sachs Group, International Business Machines (IBM) and Texas Instruments sent the market falling early on Tuesday.

The Dow Jones Industrial Average recently shed 120 points, or 1.2 percent, to 10035, putting the market within striking distance of sliding below the 10000 level.

Investors zeroed in on signs of lagging top-line growth at companies that had managed to boost earnings in earlier quarters by cutting costs.

Investors shrugged off yet another sign of housing market weakness, which actually served to encourage some.

The Commerce Department reported that housing starts dropped a more-than-expected 5 percent to a seasonally adjusted annual rate of 549,000 in June, when economists had been expecting a 3.2 percent drop.

But market watchers said the decline in new home building may help the industry work through its surplus of homes accumulated during more frenzied times, though a stagnant industry provides fewer jobs in the short term.

On the JSE, Anglo American plc (AGL) fell 99 cents to 274.01 rand, but BHP Billiton (BIL) rallied 3.39 rand or 1.60 percent to 214.61 rand.

Angloplat (AMS) added a rand to 698.00 rand, and Impala Platinum (IMP) rose 1.55 rand to 186.55 rand.

Aquarius (AQP) surged 3.50 rand or 13.46 percent to 29.50 rand. The world's fourth-largest platinum producer reassured that it had a say in how it improved safety at its mines.

Gold miner AngloGold Ashanti (ANG) shed 1.60 rand to 300.40 rand, and Harmony (HAR) shed 1.95 rand or 2.51 percent to 75.80 rand. DRDGold (DRD) lost nine cents or 2.80 percent to 3.12 rand.

Kumba (KIO) rose 3.90 rand or 1.13 percent to 347.90 rand, and steel group ArcelorMittal (ACL) gained 5.00 rand or 6.94 percent to 77.00 rand.

ArcelorMittal and Kumba are meeting Thursday for further talks mediated by the Department of Trade and Industry (DTI) in a bid to resolve the dispute over the pricing of iron ore.

The DTI said late on Monday evening that the urgent meeting between the parties had resulted in a "constructive engagement toward seeking a solution to the current dispute" between AMSA and Kumba.

Diversified miner Exxaro (EXX) was up 1.65 rand or 1.50 percent to 111.65 rand.

As for industrial shares, BAT (BTI) lost 80 cents to 258.60 rand, and SABMiller plc (SAB) fell 3.81 rand or 1.72 percent to 218.19 rand.

Paper and pulp group Mondi (MND) slumped 1.06 rand or 2.20 percent to 47.09 rand, and Sappi (SAP) gave up nine cents to 33.00 rand.

Telecommunications group MTN (MTN) firmed 1.03 rand to 115.25 rand, but Vodacom (VOD) shed 34 cents to 61.40 rand.

ICT company Pinnacle Technology Holdings (PNC) ended flat at 4.30 rand. The firm announced plans to acquire Axiz Technology for 170.9 million rand.

Axiz is headquartered in Gauteng with regional offices in Eastern Cape, Western Cape, Free State, KwaZulu Natal, Botswana, Namibia and Zambia.

In the banking sector, Standard Bank (SBK) fell 60 cents to 109.90 rand, and Absa (ASA) lost 2.50 rand or 1.85 percent to 132.50 rand, but FirstRand (FSB) was 11 cents higher at 19.71 rand.

Investec (INL) slashed 89 cents or 1.56 percent to 56.00 rand.

Financial services group Santam (SNT) dived 1.60 rand or 1.43 percent to 110.40 rand.

In the media sector, Naspers (NPN) rose 25 cents to 287.00 rand.

Ellies Holdings (ELI) surged 10 cents or 6.45 percent to 1.65 rand.

The electronic products company reported diluted headline earnings per share of 23.18 cents for the year ended April 2010 from 24.08 cents a year ago. A cash dividend of five cents per share was declared.

The company said although recessionary conditions continued throughout the year, profitability improved dramatically in the second six-month period and overall the results for the year are "satisfactory".

Other counters making headlines included energy company Keaton Energy Holdings (KEH), which surged 39 cents or 8.13 percent to 5.19 rand. The group said its 74 percent-held subsidiary Keaton Mining has concluded negotiations with South African power utility Eskom to supply 16.5 million tonnes of steam coal from Phase 2 of its new Vanggatfontein Project near Delmas in South Africa's Mpumalanga Province.

Merafe Resources (MRF) was one cent weaker at 1.29 rand after announcing that the Xstrata-Merafe Chrome Venture's mining operations would continue as planned while the company prepared to present its case to the Department of Mineral Resources (DMR).

Like the platinum producers in the North West, the Xstrata-Merafe Chrome Venture has been instructed by the DMR to review the Code of Practice applying to the bord-and-pillar mining method.

Australian and JSE listed diamond exploration company Tawana Resources (TAW) was unchanged at 11 cents.

The diamond exploration company said it has completed the placement of 66 million shares at 1 cent per share to raise A$660,000. The new capital raised will be used to fund the company's exploration programs, for the review of new projects and for general working capital purposes, it said.