South African stocks tanked on Monday as a near 9-percent dive in Chinese shares and a sharp drop in the dollar and major commodities sent investors scrambling. Losses showed across the board, as big resource stocks such as Kumba Iron Ore leading the way with a 6.4 percent fall to 83.77 rand after a record intrady low of 81 rand. "Everyone is pulling out because you don't want to be the last one standing. Our markets are very liquid and so investors can get in and out easily," NKC African Economics economist, Christie Viljoen, said.
Johannesburg-traded shares in Kumba's parent, international mining group Anglo American, skidded 6.5 percent lower. The Top-40 index lost 2.85 percent to 47,631. It lost close to 6 percent at one point in volatile trade, hitting 41,037, its lowest level since October last year. The broader All-share index fell 2.85 percent to 47,631. Momentum indicators suggest both have now strayed into oversold territory, which could entice some investors back. "On the equities market, things are looking oversold and so there could be a bit of bounce off that. Fundamentals have not changed to the extent that markets are showing. This is just panic selling," Caleo Capital markets analyst, Lloyd Priestman, said. Shares in gold producers managed gains, as bullion's spot price held near seven-week highs on a dollar slump and the global equity rout. They also benefited from the rand's fall to a record of 14 to the dollar as gold is priced in greenbacks. AngloGold Ashanti climbed 7.6 percent to 115 rand while Harmony Gold added 6.3 percent to 14.25 rand.
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