Publications
Partners
Johannesburg/London - South African stocks ended lower on Thursday, in line with global equities on resurgent worries about the eurozone debt crisis, with Mondi topping the decliners’ list after a broker downgrade.
Credit Suisse cut Mondi’s rating to “underperform” from “neutral”, citing a worsening demand outlook for the global paper industry.
In reaction, shares in the paper maker skidded 4.9% to R57.55, its biggest daily percentage decline in nearly a month.
Doubts about the eurozone’s ability to come up with a comprehensive plan for its debt crisis weighed on the wider index.
The JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index was down 1.3% to 27 546.58 and the broader All Share [JSE:J203] index gave up 1.2% to 30 836.89.
“It’s Europe again. The market was rallying on the back of hopes that Sarkozy and Merkel were crafting a plan for the debt crisis, but it unfortunately fell apart,” said Phinda Mangolothi, a trader at Legae Securities.
Miners also featured on the biggest decliners list as commodity prices faltered.
Negativity sweeps globe
Earlier the Shanghai Comp and Nikkei closed more than 1% down.
The FTSE 100 ends down 1.2% as its volatility index surged.European shares hit a two-week closing low in choppy session as doubts whether this weekend's EU summitwill go ahead overshadowed news that the region’s rescue fund will be able to buy bonds on the secondary market.
Investors’ optimism that the weekend summit would result in a concrete plan to solve the debt crisis got dented after a German newspaper report said the German government did not rule out the possibility of postponing the meet.
“We are within 48 hours of them (European policymakers)allegedly doing something and everything is telling you they haven’t done anything. It would be hugely negative for the market if they don’t agree on some deal by the weekend,” said the head of investment dealing at a fund that manages $80bn.
The FTSEurofirst 300 index of top European shares provisionally finished 1.4% weaker at 955.05 points.
Banks, which have a significant exposure to peripheral eurozone countries and would badly suffer in the event of a Greek default, were the top decliners, down 4%. The banking sector is down 33% this year.
Wall St also fell on uncertainty over the EU summit.
Credit Suisse cut Mondi’s rating to “underperform” from “neutral”, citing a worsening demand outlook for the global paper industry.
In reaction, shares in the paper maker skidded 4.9% to R57.55, its biggest daily percentage decline in nearly a month.
Doubts about the eurozone’s ability to come up with a comprehensive plan for its debt crisis weighed on the wider index.
The JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index was down 1.3% to 27 546.58 and the broader All Share [JSE:J203] index gave up 1.2% to 30 836.89.
“It’s Europe again. The market was rallying on the back of hopes that Sarkozy and Merkel were crafting a plan for the debt crisis, but it unfortunately fell apart,” said Phinda Mangolothi, a trader at Legae Securities.
Miners also featured on the biggest decliners list as commodity prices faltered.
Negativity sweeps globe
Earlier the Shanghai Comp and Nikkei closed more than 1% down.
The FTSE 100 ends down 1.2% as its volatility index surged.European shares hit a two-week closing low in choppy session as doubts whether this weekend's EU summitwill go ahead overshadowed news that the region’s rescue fund will be able to buy bonds on the secondary market.
Investors’ optimism that the weekend summit would result in a concrete plan to solve the debt crisis got dented after a German newspaper report said the German government did not rule out the possibility of postponing the meet.
“We are within 48 hours of them (European policymakers)allegedly doing something and everything is telling you they haven’t done anything. It would be hugely negative for the market if they don’t agree on some deal by the weekend,” said the head of investment dealing at a fund that manages $80bn.
The FTSEurofirst 300 index of top European shares provisionally finished 1.4% weaker at 955.05 points.
Banks, which have a significant exposure to peripheral eurozone countries and would badly suffer in the event of a Greek default, were the top decliners, down 4%. The banking sector is down 33% this year.
Wall St also fell on uncertainty over the EU summit.
