Money SA economy
The JSE was awash in red in noon trade on Wednesday as global markets tumbled on Germany's shock announcement of a ban on naked short-selling of certain financial instruments.
By 12pm the JSE all share index was down 2.02%, with resources 2.92% weaker, platinum miners off 3.16% and gold miners 1.82% lower. Banks were 1.41% weaker, financials were down 1.32 and industrials were off 1.50%.
Gold was quoted at $1,208.09 a troy ounce from $1,247.65/oz at the JSE's last close. Platinum was at $1,615/oz from $1,685.50/oz at the JSE's last close.
"We're pretty much just following the global turmoil," an equities trader lamented.
Traders pointed out that the usually beneficial effects of a weaker rand were being negated by lower commodity prices.
Dow Jones Newswires reports that European stocks, the euro and core European government bond yields tumbled Wednesday as investors worried that Germany's ban on the naked short selling of certain euro-zone debt instruments and credit default swaps, as well as some financial stocks, could hurt the global economy.
Market participants were sceptical over the ban, which many believe might be a precursor to something bigger.
Meanwhile, US stocks are picked to open sharply lower on Wednesday following Europe's decline on the shock announcement of a ban on naked shorting of certain financial instruments from the German Finance Ministry, says David Morrison of GFT.
On the JSE, Anglo was R8.34 or 2.89% weaker at R280.71, while BHP Billiton lost R8 or 3.78% to R203.50. Sasol was down R5.45 or 1.91% to R279.55.
