The world markets meltdown which continued on Monday spilled over to the JSE, dragging the All Share-index below 48 000 points.

On Friday, the All Share closed below 50 000 points for the first time since the beginning of the year. On Monday, all the major indices on the JSE, with the exception of the Gold index, were substantially lower. The declines were expected as all the indices are now trading sharply below their 200-day averages and analysts predict the end is not yet in sight.
The markets are still in turmoil on concerns about the poor prospects for the Chinese economy, which is a big threat for world growth.

World markets, which were sharply lower on Friday, continued on the same path on Monday with the European markets again more than 2% lower by midday.

It was however the emerging markets, which include South Africa, which were the hardest hit, with Hong Kong (-5.17%), Japan (-4.61%) and Australia all (-4%) all substantially lower.

By midday, the All Share-index was 2.39% lower on 47 859 points and the Top 40-index lost 2.42% to 42 355 points. The Resources index was down 3.40% as commodity prices fell further, while the Industrial and Financial indices traded 2.40% and 1.82% lower respectively.

The losses seems more moderate than other emerging markets, as exporters received some support from the weaker rand which traded at R13.24/$ by midday after breaking through R14.00/$ overnight.

Gold shares continued with their recovery as precious metals are regarded a safe haven in times of financial turmoil. The Gold index gained another 0.86% despite the gold and platinum prices slightly lower.

Among the top shares Naspers, which has a big exposure to the Chinese economy, traded 2.07% lower on R1 587.38. The share price started sharply lower and was in early trading more than 4% lower on R1 521.90.

Sasol lost 3.20% to R373.18 as the oil price dropped even further. Brent crude traded below $44 per barrel on Monday. Sasol lost 9.38% over the past seven days.

BHP Billiton, which was severely punished on the Australian market earlier on Monday, was at midday 3.87% softer on R208.60. Anglo also lost ground and traded 3.40% lower on R143.38.

News24.com