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Johannesburg - South African stocks sank on Wednesday in line with a wider emerging market sell-off on uncertainty about US Federal Reserve's stimulus plans, but retailer Spar bucked the trend, gaining smartly on solid results.
Spar, which is focused on the grocery sector, reported a rise in full-year earnings of almost 14%, lifting its share price 2.64% to R122.25.
The group is the latest retailer to post surprisingly good results given wider gloom in Africa's largest economy, which is hampered by slow growth and high levels of consumer debt.
Elsewhere the market suffered its heaviest one-day fall in four months, with resources and banking stocks and other retailers taking big hits.
The Top-40 index shed 2.02% to 39 903.26. The wider All-share index gave up 1.81% to end the session at 44 625.00.
Even after the drop, analysts said stock prices are not backed by the fundamentals of an economy set to grow barely 2% this year, and plagued by wide current account and budget deficits and labour strife.
"We will have to get back down quite a lot to get to realistic valuations," said NKC Independent Economists analyst Christie Viljoen.
He also noted there had been big bond outflows in recent days while the rand currency was on the back foot near 11-week lows, reflecting a flight of portfolio capital from riskier assets.
Wednesday's big decliners included Switzerland-based luxury goods maker Richemont, down 3.50 percent, and world No. 2 platinum producer Impala Platinum, which shed almost 3.20%.
The wider concern for emerging markets is the prospect of the U.S. Fed winding down its aggressive programme of pumping liquidity into the global economy, an adjustment that will reduce the attraction of emerging markets such as South Africa.
Decliners on Wednesday far outnumbered advancers 226 to 77, according to preliminary bourse statistics. Volumes were brisk with around 272 million shares changing hands.
Spar, which is focused on the grocery sector, reported a rise in full-year earnings of almost 14%, lifting its share price 2.64% to R122.25.
The group is the latest retailer to post surprisingly good results given wider gloom in Africa's largest economy, which is hampered by slow growth and high levels of consumer debt.
Elsewhere the market suffered its heaviest one-day fall in four months, with resources and banking stocks and other retailers taking big hits.
The Top-40 index shed 2.02% to 39 903.26. The wider All-share index gave up 1.81% to end the session at 44 625.00.
Even after the drop, analysts said stock prices are not backed by the fundamentals of an economy set to grow barely 2% this year, and plagued by wide current account and budget deficits and labour strife.
"We will have to get back down quite a lot to get to realistic valuations," said NKC Independent Economists analyst Christie Viljoen.
He also noted there had been big bond outflows in recent days while the rand currency was on the back foot near 11-week lows, reflecting a flight of portfolio capital from riskier assets.
Wednesday's big decliners included Switzerland-based luxury goods maker Richemont, down 3.50 percent, and world No. 2 platinum producer Impala Platinum, which shed almost 3.20%.
The wider concern for emerging markets is the prospect of the U.S. Fed winding down its aggressive programme of pumping liquidity into the global economy, an adjustment that will reduce the attraction of emerging markets such as South Africa.
Decliners on Wednesday far outnumbered advancers 226 to 77, according to preliminary bourse statistics. Volumes were brisk with around 272 million shares changing hands.
