JSE posts biggest daily loss in a year

Johannesburg - Shares plunged more than 2% on Tuesday, the biggest one-day drop in a year, as falling oil and commodity prices depressed sentiment and dragged iron ore producers such as Kumba lower.

Transport company Imperial and e-commerce firm Naspers were also hit by investors booking profit after weeks of the share prices running.

"We're still definitely down with what's happening in energy markets and iron ore prices are still down," said Ferdi Heyneke, portfolio manager at Afrifocus Securities.

Volatile trade

"It's going to remain volatile and will depend on underlying commodity prices," he said of the market.

Brent crude oil fell to a five year low near $65 a barrel in volatile trade on Tuesday, sliding for a sixth consecutive session on signs of a growing supply glut.

SA's blue chip Top-40 index was down 2.4% to 42 911, while the All-share shed 2% to 48 557. These were the biggest daily losses since 12 December 2013.

Iron ore prices have lost about 50% this year, partly due to concerns over slow economic growth in China, the largest importer of the commodity.

Alternative investment

They have weighed on Kumba, which ended 3% lower and on Assore, which lost nearly 4%.

Kumba and Assore shares are down 45% and 56% this year.

Gold producers moved in the opposite direction as investor aversion to risk increased bullion's attraction as an alternative investment. Johannesburg's gold index gained 3.6% as all producers gained.

Harmony was up 6.6% and Gold Fields gained 3.6%.

Trade was robust with more than 219 million shares sold, according to preliminary bourse data, well above last year's daily average of 176 million shares.