Stocks extended losses at noon on Monday, weighed by weak sentiment in European markets with miners further hit by tentative metal prices, traders said.

But the volumes were light as US markets are closed for a Labour Day public holiday.

At noon, the all share index was down two percent, led by a 3.30 percent slump in resources. The gold and platinum mining indices weakened 1.72 percent and 2.70 percent respectively. Banks lost 1.35 percent, financials surrendered 1.05 percent and industrials were 0.79 percent in the red.

The rand was bid at 7.71 to the dollar from 7.70 when the JSE closed on Friday, while gold was quoted at $831.05 a troy ounce from $834.25 at the JSE's last close. Platinum was last at $1450/oz – down $26.50 from its previous close. Brent crude futures were at $113.39 per barrel from a previous close of $114.05.

"Sentiment is extremely negative in Europe. London is down, Paris is down and weakening commodity prices are not making things any easier for our mining stocks," one trader said.

Dow Jones Newswires reports that all but a handful of companies fell in London's top index on Monday after Chancellor Alistair Darling said the economy could be facing its worst crisis for 60 years.

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