THE JSE ended the session on Monday within a whisker of its record level, lifted by positive global sentiment attached to the Greek vote, although some analysts questioned the sustainability of the rally.

At 5pm local time, the JSE all-share index was up 1,41% to 34438,76 points, with resources gaining 1,58%, while gold counters were down 0,12%, and platinums jumped 2,83%.

Financials were up 1,75%, banking stocks rallied 2,14% and industrials added 1,16%.

The rand was trading at R8,34 to the dollar, from R8,37 at the JSE's close on Friday, while gold was quoted at $1622,95 a troy ounce from $1628,80/oz at the JSE's previous close. Platinum was at $1483,20/oz, from $1491,20/oz previously.

"It's a knee-jerk reaction. I'm not convinced the euro area is suddenly going to swing into the growth phase," said Ian Cruickshanks, market commentator at Nedbank Capital. "It boils down to the old saying: when in doubt, stay out. It is going to take a while before the authorities in Greece get a proper handle on the sovereign stress in that country, plus you have a festering banking crisis in Spain."

Francois du Plessis, director at Vega Asset Management. said: "I wouldn't rush into these markets. It is nothing more than short covering. The reality will soon set in as people realise that these are short-term solutions."

US stocks straddled the flat line on Monday, paring earlier losses, as investors weighed Spain's debt woes with hopes for stimulus efforts by global governments and central bankers, Dow Jones Newswires reported.

Leaders of the Group of 20 advanced and emerging economies were expected to press for swifter action by European officials at a summit starting on Monday. Meanwhile, the US Federal Reserve's monetary policy-making committee is to meet on Tuesday and Wednesday, leaving open the possibility that additional efforts to support the US economy could be on tap.

Initial excitement over the New Democracy party's narrow victory in Greece's election on Sunday quickly faded. The outcome eased fears the country would face an abrupt and unruly exit from the euro zone. But the party's ability to form a viable coalition remained uncertain.

mahlangua@bdfm.co.za