South African stocks extended their losses by noon on Thursday as traders took profits in the wake of suffering global markets.
Asian markets were lower earlier after Wall Street lost more than 5% overnight.
By 11.56am the JSE’s all-share index had fallen 2,78% weighed down by resources which tumbled 4,34%, platinum stocks which shed 3,10% and gold miners, which gave up 1,49%.
Banks slipped 2,56%, financials lost 1,52% and industrials gave up 1,80%.
The rand was bid at 9,86 to the dollar from 9,65 when the JSE closed on Wednesday, while gold was last quoted at $741,75 a troy ounce from $755,65/oz at the JSE’s last close.
The platinum price was at $865/oz; edging up 0,41% from its previous close of $861,50/oz and Brent crude was at $61,50 from its close of $61,87.
“There is profit taking on the back of the recent rallies. Sanity is coming back into the market,” a local equities trader said.
“Markets are realising that the problem is still there and it needs to be dealt with,” he added.
Dow Jones Newswires reports that European stocks dropped sharply on Thursday on renewed global recession worries and ahead of key interest rate decisions from the Bank of England and the European Central Bank.
Shares in London fell sharply across the board ahead of a widely expected interest rate cut from the Bank of England. The market-wide declines came after US stocks closed sharply lower on Wednesday as economic worries overshadowed the election of president-elect Barack Obama.
The FTSE 100 was last down 4,26%.
Asian markets also tumbled amid global economic worries, with China’s main stock index dropping to a level it hasn’t seen in more than two years, while benchmarks in Japan and Hong Kong slumped more than 5%.
In Japan the Nikkei ended 6,53%, or 622,10 points, at 8 899,14.
On the JSE, Anglo American fell R11,50, or 4,83%, to R226,50 and and BHP Billiton tumbled R10,22, or 5,87%, to R163,98.
Sasol gave up R6,99, or 2,61%, to R261,01.
Paper and packaging group Sappi (SAP) shed 46 cents to R60,29. The company earlier reported that its annual earnings per share nearly halved to 45 US cents from 80 US cents a year ago.
Rival Mondi was down R2,50, or 6,02%, to R39.
ArcelorMittal lost R3,50, or 4,22%, to R79,50 and Kumba Iron Ore was down R5,72, or 4,48%, to R122,08.
Among gold miners AngloGold Ashanti was down R3,50, or 1,82%, to R189, Gold Fields fell R2,38, or 3,36%, to R68,38.
However, Harmony put on R1,61, or 2,32%, to R71,01.
Platinum miner Anglo Platinum gave up R8,81, or 2,16%, to R399,99, Impala Platinum dipped R3,80, or 3,46%, to R106,15 and Lonmin lost R4, or 2,23%, to R175.
In other miners African Rainbow was off R6,44, or 5,85%, to R103,56 and Exxaro lost R2,30, or 3,43%, to R64,70.
Elsewhere on the JSE, brewer SABMiller shed R3,17, or 2,06%, to R150,81, Barloworld lost R3,50, or 5,79%, to R57 and Imperial gave up R1,55, or 2,84%, to R52,95.
However, tobacco maker British American Tobacco added R1,18 to R264,58.
Among banks Standard Bank lost R1,77, or 2,36%, to R73,23, Nedbank fell R1,03, or 1,18%, to R85,97, Absa gave up R1,54, or 1,62%, to R93,51 and FirstRand edged down 56 cents, or 4,06%, to R13,25.
Life insurer Old Mutual added 37 cents, or 4,36%, to R8,85. It said earlier that funds under management were down 9% from end December 2007 to £254,4-billion in the nine months ended September. The group said it had a robust third quarter performance.
Mutual and Federal gained 15 cents, or 1,02%, to R14,80. It said earlier that Old Mutual, which plans to sell its stake in it, will make an announcement next month.
Among retailers Truworths lost 30 cents to R31,50. The company earlier reported that sales for the 18 weeks of its FY2009 rose 14% to R2,065-billion, but said the environment remained challenging. Group same store retail sales were 8% higher, with product inflation of about 6% and trading space increased by 10% relative to the corresponding period in 2008.
Woolies gave up 50 cents, or 4,26%, to R11,25 and Steinhoff lost 76 cents, or 5,98%, to R11,95.
Telecommunications group MTN Group was down R2,99, or 2,74%, to R106,01.
However, Telkom added 56 cents to R116,01. The group said earlier that it had agreed to sell 15% of its 50% stake in Vodacom to UK-based Vodafone group for R22,5-billion, and spin off the remaining 35% of shares to its shareholders. – I-Net Bridge