South African stocks extend losses on worries of U.S. debt default
JOHANNESBURG (Reuters) - South African stocks fell hard on Tuesday as investors dumped shares in a bourse that has scaled record highs in recent weeks on concern that a U.S. debt default could rattle global markets.
Resource shares such as Assore (ASRJ.J) and Kumba Iron Ore (KIOJ.J), were among the biggest losers and pushed the blue-chip Top-40 index .JTOPI 1.21 percent lower to a one-month low of 38,578.53.
The broader All-share index .JALSH fell 1.08 percent to 43,253.61.
"Our market was totally overbought and needed a bit of profit taking," said Rigaardt Maartens, a portfolio manager at PSG Online Securities.
Global markets have slumped on the prospects of a debt default in the world's biggest economy, especially as a partial U.S. government shutdown has entered its second week and only nine days remain for Congress to act before an October 17 U.S. debt ceiling deadline.
Assore dropped 4.2 percent while Kumba fell 2.5 percent and diversified miner Exxaro (EXXJ.J) was down 2.4 percent.
Telkom SA (TKGJ.J) extended gains with a rise of more than 4 percent to hit its highest level in 20 months after the fixed-line operator flagged that first-half earnings likely rose more than 20 percent.
The company has been turning around after years of falling profit and its stock has gained more than 80 percent since the appointment of a new chief executive in April of this year.
Trade was heavy with 177 million shares changing hands, according to preliminary data, with 110 shares advancing and 199 declining, while 60 were unchanged.
(Reporting by Helen Nyambura-Mwaura; Editing by Jon Herskovitz)
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