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Johannesburg - The JSE ended deep in negative territory on
Wednesday, as losses piled up due to a sombre mood fanned by
renewed worries over Asian economies and the US.
Risk aversion was returning as nervous investors switched from riskier assets like equities into safer investments such as gold and bonds, Kevin Algeo, portfolio manager at Imara S P Reid, said.
Gold stocks surged nearly 3% on the back of the stronger yellow metal and weaker rand.
The JSE all share index shed 1.63%. Gold miners climbed 2.56%, but resources edged down 2.00% and platinum miners fell 2.90%. Banks lost 1.70%, financials declined 1.55%, and industrials weakened 1.31%.
The rand was bid at R7.29 to the dollar from R7.21 at the JSE's close on Tuesday. Gold was quoted at $1 195.64 a troy ounce from $1 194.74/oz at the JSE's previous close, while platinum was at $1 525.00/oz from $1 540.50/oz before.
A trader said investors were concerned that the US Federal Reserve said on Tuesday the world's largest economy was slowing but it did not introduce new measures to support the economy.
Algeo said the local market weakened on negative sentiment fuelled by downbeat economic data from China and Japan.
"The big question regarding China is: is it heading for a soft landing or a hard landing," Algeo said.
Dow Jones Newswires reported that US stocks opened deeply in the red on Wednesday after the US trade deficit unexpectedly widened and Asian economies showed signs of slowing, adding to investor worries a day after the US Federal Reserve moved to support the economic recovery.
The Dow Jones Industrial Average fell 203 points, or 1.9%, to 10441, led by cyclical stocks in the energy, industrial and material sectors.
- I-Net Bridge
renewed worries over Asian economies and the US.
Risk aversion was returning as nervous investors switched from riskier assets like equities into safer investments such as gold and bonds, Kevin Algeo, portfolio manager at Imara S P Reid, said.
Gold stocks surged nearly 3% on the back of the stronger yellow metal and weaker rand.
The JSE all share index shed 1.63%. Gold miners climbed 2.56%, but resources edged down 2.00% and platinum miners fell 2.90%. Banks lost 1.70%, financials declined 1.55%, and industrials weakened 1.31%.
The rand was bid at R7.29 to the dollar from R7.21 at the JSE's close on Tuesday. Gold was quoted at $1 195.64 a troy ounce from $1 194.74/oz at the JSE's previous close, while platinum was at $1 525.00/oz from $1 540.50/oz before.
A trader said investors were concerned that the US Federal Reserve said on Tuesday the world's largest economy was slowing but it did not introduce new measures to support the economy.
Algeo said the local market weakened on negative sentiment fuelled by downbeat economic data from China and Japan.
"The big question regarding China is: is it heading for a soft landing or a hard landing," Algeo said.
Dow Jones Newswires reported that US stocks opened deeply in the red on Wednesday after the US trade deficit unexpectedly widened and Asian economies showed signs of slowing, adding to investor worries a day after the US Federal Reserve moved to support the economic recovery.
The Dow Jones Industrial Average fell 203 points, or 1.9%, to 10441, led by cyclical stocks in the energy, industrial and material sectors.
- I-Net Bridge
