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Johannesburg - South African stocks fell 0.7% on Thursday, with investors dumping banks and retailers after a further cut in US monetary stimulus helped support the sell-off in emerging market assets.
Shares in Exxaro Resources fell 2.3% to R152.19 after the coal producer warned full-year profit was likely to have fallen more than 20%.
Investors have been fleeing emerging market assets across the globe due to the prospect of steady withdrawal of stimulus by the US Federal Reserve, which trimmed its bond purchases by another $10bn on Wednesday.
Data on Thursday showed foreign investors sold a net $26 million worth of South African stocks last week, a trend that looks likely to continue.
"We have frequently flagged South Africa as being one of the most vulnerable EMs to a slowdown in capital inflows, given its large current account deficit and low ratio of FX reserves to its gross external financing requirement," Capital Economics said in a note to clients on Thursday.
The benchmark Top-40 index dropped 0.7% to 40 687.21.
The broader All-Share index declined 0.85% to 45 178.25.
Shares of retailer Woolworths fell 3.2% to R61.25.
FirstRand, South Africa's second-largest lender, dropped 3.1% to R31.02.
Trade was active with 375 million shares changing hands.
Shares in Exxaro Resources fell 2.3% to R152.19 after the coal producer warned full-year profit was likely to have fallen more than 20%.
Investors have been fleeing emerging market assets across the globe due to the prospect of steady withdrawal of stimulus by the US Federal Reserve, which trimmed its bond purchases by another $10bn on Wednesday.
Data on Thursday showed foreign investors sold a net $26 million worth of South African stocks last week, a trend that looks likely to continue.
"We have frequently flagged South Africa as being one of the most vulnerable EMs to a slowdown in capital inflows, given its large current account deficit and low ratio of FX reserves to its gross external financing requirement," Capital Economics said in a note to clients on Thursday.
The benchmark Top-40 index dropped 0.7% to 40 687.21.
The broader All-Share index declined 0.85% to 45 178.25.
Shares of retailer Woolworths fell 3.2% to R61.25.
FirstRand, South Africa's second-largest lender, dropped 3.1% to R31.02.
Trade was active with 375 million shares changing hands.
