Gold shares did something to redeem themselves as supposed safe haven on the JSE on Friday. By mid-afternoon the index was up 13% as global markets were tumbling.
Gold rallied to $914 an ounce as investors shied away from stock markets.
The JSE's gold index has been the worst-performing major index over the past five years. Despite Friday's rally, the index has yet to break through the 2 000-point barrier, last seen in August 2008.
European markets opened 10% lower Friday morning led down by resources stocks. The JSE also opened 1 000 points lower and was 800 points down by mid-afternoon. It is on track for one of the worst trading weeks since 1998.
The All Share Index was trading at 20 400 points, its lowest level in more than two years. The index is nearly 40% off an all time high set in May this year.
The JSE's two largest stocks by market value, BHP Billiton (JSE:BIL) and Anglo American (JSE:AGL), dropped 9% and 6% respectively.
Dual-listed financial services companies Old Mutual (JSE:OML) and Investec (JSE:INP) both fell 11%.
Japan's Nikkei index fell nearly 10% last night, while the Dow Jones shed more than 7% on Thursday.
Good news for motorists is that oil continued its downward trend. A barrel of Brent Crude costs $78.
The rand is trading at 9,35 to the dollar, 15,87 to the pound and 12,68 to the euro.
