[2008-10-16]  JSE crashes nearly 7% on global woes
SOUTH African stocks plummeted nearly 7% yesterday following severe drops in overseas markets amid renewed fears of a global economic slowdown even after huge bank bail-outs, traders said.

Resources and platinum miners were the hardest hit, falling by more 11% and 13% respectively, as fears of global economic slowdown hit platinum group metals prices and other base metals, while gold’s safe haven status remained firmly intact, but gold shares were unable to capitalise at the end of the day.

Most benchmark stocks traded in negative territory all day, extending to a broad-based sell-off in the late afternoon after weak US retail sales data heightened concerns about the world’s largest economy.

“We are seeing a massive sell-off across the board after the US retail sales fell to their worst level in three years," Martin Lentsoane of Cortex Securities said.

“The credit crisis is under control, but that doesn’t remove worries on global economic slowdown," a trader said. The all share index ended down 6,99%, or 1545 points, at 20571,87, weighed by an 11,14% decline in resources and a 13,35% crash in the platinum mining index. The gold mining index reversed 1,43%.

Banks fell 1,26%, financials were down 2,91% and industrials gave up 4,62%.

Back in Johannesburg, Anglo American (AGL) plummeted R41,25, or 15,74%, to R220,90 and rival BHP Billiton (BIL) slumped R17,50, or 10,45%, to R149,99. Sasol (SOL) sank R29,23, or 10,1%, to R260,25.

Expected declines in demand for platinum due the global economic slowdown pushed the price down by more than 3%, dragging stocks along.

Anglo Platinum (AMS) dived R84,89, or 12,41%, to R599 and Impala Platinum (IMP) plunged R22, or 14,47%, to R130. But gold miners, although weak, fared much better than other miners benefiting from the firmer gold price, traders said. AngloGold Ashanti (ANG) was down R4,74, or 2,38%, to R194,25 and Gold Fields (GFI) was R1,07, or 1,45%, in the red at R72,75.

Elsewhere, brewer SABMiller (SAB) was up 133c to R150, but luxury goods group Richemont (RCH) fell 170c, or 4,61%, to R35,20 and Imperial (IPL) plunged R3,80, or 6,44%, to R55,20.

Among banks and financials, Standard Bank (SBK) eased R1, or 1,23%, to R80, Nedbank (NED) dropped R3,53, or 3,62%, to R93,97 and Old Mutual (OML) nose-dived 123c, or 10,54%, to R10,44. In the news, IT group Datatec (DTC) tumbled 320c, or 14,16%, to R19,40. Dimension Data (DDT) fell 75c, or 12,82%, to R5,10.

Retailer Pick n Pay (PIK) was down 20c to R28,70.

South African near-dated futures ended deep in the red yesterday, moving in line with weaker trade global markets after the Dow opened over 200 points weaker, amid renewed fears of a global economic slowdown even after big bank bail-outs. “The Alsi is sharply down and that is in line with the stock market," a trader said.

He said the market had been trading low for the day, and added that it was purely on the back of the poor sentiment coming from overseas markets. The near-dated Alsi contract ended 1380 points, or 6,72%, lower at 19,145. A total of 66975 Alsi contracts changed hands compared with 65913 on Tuesday, a Safex official said.

South African white maize futures ignored the weaker local currency and ended slightly lower yesterday.

Traders said local markets were also taking their direction from global markets after trade on the Chicago Board of Trade ended lower on Tuesday. “Markets are down and it’s quite surprising taking into consideration the weakness of the rand," a trader said.

The December white maize contract lost R12 to R1845 a ton, March maize gave up R15 to R1925 and in-delivery October maize fell R11 to R1804.

Among other grains, December wheat lost R38 to R2966 a ton, March wheat gave up R29 to R3067 and October wheat was flat at R2968 a ton .
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.