The JSE was more than 300 points down in early trade on Tuesday morning, in line with global markets that were taking a bleak view of Europe's debt crisis.
By 09:11 local time, the JSE all-share index lost 1.01%, with banks down 0.99% and financials off 0.78%. Industrials shed 0.80%. Platinum miners declined 1.40%, resources moved 1.38% lower and gold miners fell 1.05%.
The rand was bid at 6.89 to the dollar, from 6.84 to the dollar at the JSE's close on Monday. Gold was quoted at US$1,551.05 a troy ounce from US$1,545.13/oz at the JSE's previous close, while platinum was at $1,714/oz, from $1,725.50/oz previously.
A local dealer said: “Global markets look pretty awful and that has carried over into the local market this morning. Even better than expected earnings from Alcoa in the US failed to alleviate current sentiment.” The trader said that there was very little economic data out to turn sentiment.
Dow Jones Newswires reported that Asian stock markets were sharply down on Tuesday amid fresh anxiety over Europe's debt crisis, with the Australian market slipping to a nine-day low while the euro tumbled to a four-month nadir against the US dollar.
The Nikkei closed down 1.4%, while the Hang Seng Index was down 2.2%, the Kospi declined 2.2%, the Sensex was down 1.0%, and the Shanghai Composite was off 1.2%.
European stocks are set to drop at the open on Tuesday, as fears the European debt crisis is spreading to Italy continue to escalate, pushing the euro currency to a four-month nadir against the dollar.
These fears, together with comments from International Monetary Fund managing director Christine Lagarde on Monday - that it was too early to discuss a second Greek bailout - sent the euro to a four-month low against the dollar at $1.3932.
“We're not yet at the stage of discussing the conditions and terms and lengths and volume,” the new IMF managing director told a press briefing in Washington. Lagarde also said that Italy must redouble its efforts to tighten its fiscal belt to restore the health of its economy.
The remarks raised concerns among market participants that European Union (EU) officials are delaying measures to be taken on Greece, and added to fears that Greece's expanding debt crisis will spill over into the rest of Europe. Credit Agricole said that, despite EU officials agreeing on Monday to give its sovereign rescue fund new powers, the meeting was unlikely to prevent further market haemorrhaging as there still appeared to be no end in sight to the crisis in the euro zone.
On the JSE, Anglo American (AGL) lost 5.87 rand or 1.77% to 325.52 rand, BHP Billiton (BIL) gave up 2.95 rand or 1.12% to 260.84 rand, and Sasol (SOL) fell 5.64 rand or 1.59% to 348.35 rand.
Gold miner Anglo Gold Ashanti (ANG) dropped 2.50 rand to 284 rand, Harmony (HAR) slid 1.43 rand or 1.6% to 87.81 rand and GoldFields (GFI) fell 1.05 rand or 1.06% to 98.30 rand.
Gold One International (GDO) was 17 cents or 4.63% worse of to 3.50 rand.
Amplats (AMS) shipped 6.79 rand or 1.13% to 593.50 rand, Impala Platinum (IMP) lost 2.80 rand or 1.63% to 169 rand, and Lonmin (LON) eased 1.94 rand or 1.29% to 149 rand.
Kumba Iron Ore (KIO) shed six rand or 1.19% to 500 rand.
Diversified miner Exxaro (EXX) moved 1.65 rand lower to 176.85 rand, and African Rainbow (ARI) dropped 1.81 rand to 186.69 rand.
Coal of Africa (CZA) profited 20 cents or 2.22% to 9.20 rand.
Construction group WBH Ovcon (WBO) slid 1.15 rand or 1.05% lower to 108.50 rand, while Aveng (AEG) dropped 60 cents or 1.64% to 36 rand. Group Five, however, gained 53 cents or 1.8% to 29.96 rand.
Pretoria Portland Cement (PPC) gave up 74 cents or 2.68% to 26.87 rand.
Industrials group Bidvest (BVT) lost 1.71 rand or 1.04% to 162.50 rand, Imperial (IPL) waivered 1.28 rand or 1.04% to 121.72 rand and Tiger Brands (TBS) offloaded 2.01 rand to 203 rand. Barloworld (BAW) declined 1.61 rand or 2.34% to 67.20 rand.
Telecommunications group MTN (MTN) moved 1.40 rand lower to 139.35 rand.
In the banking sector Standard Bank (SBK) fell 1.01 rand or 1.01% to 98.99 rand, Nedbank (NED) receded 1.43 rand to 145 rand, and Absa (ASA) weakened 1.22 rand to 133.72 rand.
Financial services group Investec (INP) gave up 96 cents or 1.71% to 55.02 rand, and Old Mutual (OML) dropped 19 cents or 1.31% to 14.29 rand.
Retailer Massmart (MSM) was off 1.64 rand or 1.16% to 139.86 rand, while Spar (SPP) was 1.55 rand or 1.69% lighter at 90.30 rand.
Hotel and gaming group Sun International (SUI) lost 1.57 rand or 1.71% to 90.44 rand.
Media group Naspers (NPN) fell 2.98 rand lower to 365.02 rand. - I-Net Bridge