South African blue-chips fell over 3 percent on Tuesday, posting their biggest one-day decline in more than 5 months on worries about growth in China and news the government could slap a windfall tax on miners. Banking shares featured among the worst decliners on a day where over 4 percent drops were the norm. The JSE banking index slid 3.61 percent.
Mining shares also featured strongly among the worst hit, after a government-appointed task-team said South Africa should impose a windfall tax on excessive profits made by mining companies.
"Everything is falling, stemming from panic surrounding Chinese market. I just think it is a correction in the Chinese market, it had had a very strong run," Cadiz African Harvest portfolio manager Rajay Ambekar said. The Johannesburg Top-40 index of blue-chip stocks fell 3.49 percent to 23,435.34 points, tripping off a fresh all-time high it scored on Monday and posting its biggest one-day percentage fall since September 11, 2006. The broader All-share index dropped 3.17 percent to 26,078.30 points.
Read more at Reuters South Africa
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