Money SA economy
The JSE shipped more than 300 points on Wednesday, to go with 700 points it shed on Tuesday, in line with global markets amid continued concerns over Europe after credit rating agency Moody's said it may downgrade Portugal's sovereign debt, while violent protests hit the streets of Athens.
The local bourse did however, come off its earlier low. The JSE all share index shed 1.14% with resources down 0.41%. Platinum miners lost 3.14%, but gold miners were up 0.21%. Banks dropped 2.57%, financials shipped 1.68% and industrials were 1.6% softer. Gold was quoted at $1,172.29/oz from $1,173.78/oz at the JSE's last close. Platinum was at $1,650/oz from $1,687/oz at the JSE's last close.
A local equities trader said: "After a brief start in positive territory this morning, the local bourse began to plummet at around midday when news filtered through that Moody's may downgrade Portugal. We did come off our earlier lows at close, however there appears to be no end in sight regarding the situation in Greece, and now other parts of Europe. The market has been selective over its news."
Dow Jones Newswires reported that US stocks tumbled at Wednesday's open, hit by heightened concerns over Europe as violence erupted in Greece and a possible downgrade loomed over Portugal's debt.
The Dow Jones Industrial Average slid 86 points, or 0.8%, to 10840, in early trading, extending Tuesday's 225-point drop. Meanwhile the Nasdaq Composite fell 1.3% and Standard & Poor's 500-stock index dropped 1%.
Financials and consumer discretionary stocks led its declines.
Wednesday's early drop came after Moody's Investors Service placed Portugal's government bond rating under review for a possible downgrade based on the deterioration of the country's public finances and its long-term economic challenges.
Meanwhile in Greece, a nationwide strike spiralled into violence. Three people were killed after a fire broke out in riots near an Athens bank.
On the JSE, Anglo dropped R3.10 or 1.03% to R298, following a 5% drop on Tuesday. BHP Billiton added R4.04 or 1.89% to R217.87. Sasol was R6.50 or 2.19% weaker at R290.
