The JSE continued on Tuesday and hopes the tension on trade between the US and China would decrease, as negotiators would meet in Beijing this week.
The total share reached 1.03% to 53,960.5 points and the top 40 1.23%. Banks gained 1.91%, operating results 1.27% and retailers in food and medicines 2.34%. Real estate fell by 0.99%.
This comes when high-level trade negotiations take place this week, with American trade representative Robert Lighthizer and secretary of the Treasury Steven Mnuchin scheduled to meet China's deputy prime minister in Beijing. Investors hope that a deal will be reached before the planned rate increases start next month.
Investor sentiment was supported on Monday when American legislators announced a preliminary agreement to prevent another government from stopping. The deal would provide $ 1.38 billion of funding for 88.5 kilometers of modern physical barriers along the border with Mexico, but the amount was much less than Trump demanded. The deal still stands for approval by the White House.
Locally, Eskom moved to the third charging station on Tuesday, while data showed that the unemployment rate had fallen slightly in the fourth quarter and that the industry would contribute positively to the GDP growth figure of 2018.
Further data this week will provide a clearer indication of how the economy performed in 2018, with statistics for mining production, wholesale and motorcycle trading for December on Thursday.
The shares of technology company EOH tumbled Tuesday after Microsoft sent the company a cancellation notice about a contract that would allow it to resell the software giant's licenses. The share price of EOH plummeted by 25.87% to R19.80, after having reached the lowest level since March 2011 earlier in the day.
Lewis fell 5.16% to R32.15 and Nampak with 2.92% to R12.95.
Spar achieved 5.03% to R168.44 after the retailer reported an 8.2% increase in sales of 17 weeks on Tuesday. Group sales for the 17 weeks ended January 26, rising to R36.53bn from R33.78bn in the same period the year before. This is despite the fact that many South African retailers have recently come under pressure due to the increased indebtedness of households, higher fuel prices and a VAT increase, all of which have put the available income of consumers under pressure.