South Africa struck by stock market turmoil

by Richard Kilner

Story link: South Africa struck by stock market turmoil

Yesterday’s market turmoil hit South Africa, where the JSE financial index was down 6.3% at its lowest ebb.

The index did make something of a recovery during the afternoon, closing 3.2% down.

Stock markets across the world suffered in the wake of Bear Stearns, the Wall Street investment bank that required emergency funding.

The FTSE closed down 217 points, although the Dow finished marginally higher.

Despite some of South Africa’s local banks being described as immune to the subprime turbulence, they did not escape the negative impact of yesterday’s trading.

Financial institutions were hardest hit, though losses were recorded across the board.

In South Africa and the rest of the world stock markets saw money being poured from shares into commodities, most especially gold, which has remained above US$1,000 per ounce.