/ 7 October 2002

SA stocks deepen losses on world rout

South African stocks extended their early losses at midday, falling 1,8%, as local shares could not hold out against the sell-off on international bourses.

By 1003 GMT decliners outnumbered gainers 136 to 58, with the all-share index 168 points off at 9,363.

”You can point your stick wherever you like — there are enough negative factors out there,” said a chief trader, referring to heightened talk of an attack on Iraq and liquidity problems among some international investment banks.

Swiss-based luxury goods group Richemont dropped 2,2%to R14,95, after earlier hitting a new year low of R14,80.

It was pulled down by a 4,9% fall in British American Tobacco after a Los Angeles jury ordered Philip Morris to pay a record $28-billion in damages to a lung cancer sufferer.

Richemont has a stake in BAT. So does Remgro, which reeled 2,7% to R64,20.

Johannesburg’s biggest stock, Anglo American, felt the heat of sharp falls in big international bourses, shedding 4,3% to R136,80.

Big insurer Old Mutual, often regarded as a proxy for the health of equity markets, lost 1,4% to R12,06. Peer Sanlam gave up a similar percentage, falling to 725 cents.

Banks could not escape the selloff among their European peers. They lost 1,6%, led lower by Standard Bank, which gave up 1,9% to R28,35. – Reuters