The JSE closed deep in the red on Monday, recording its lowest levels since 2006 as global equities continue to fall after the US government's $700-billion rescue plan and more Federal Reserve liquidity measures failed to halt a global banking crisis and fears of a global recession in 2009 escalate.

Traders say the local market is taking its cue from overseas markets, with the DJIA having trading below the 10000 mark for the first time since October 2004.

Earlier in the day traders said "that now that the financial bailout has been approved, the market is still not sure what the approval means for the market in the long run".

"The bailout has happened, now what?" a trader said. "The markets are not out of the woods yet."

"At this point in time, it seems like everyone wants out of equities," another trader said.

The all share index sank 7.30 percent with resources falling 9.18 percent.

Platinum stocks shed 10.41 percent and gold miners gave up 0.83 percent. Industrials lost 5.83 percent, financials fell 6.44 percent and banks were down 9.10 percent.

The rand was bid at 8.87 to the dollar from 8.45 when the JSE closed on Friday, while gold was last quoted at $867.85 a troy ounce from $838.52 when the JSE last closed.

Platinum was trading at $985/oz from a previous close of $950/oz. Brent crude was at $86.30 per barrel, from its previous close of $90.25.

On the JSE, Anglo American gained 6.08 percent to 249.80 rand and BHP Billiton was up 5.69 percent to 171.81 rand.

Petrochemical giant Sasol lost 1.97 percent to 273 rand.

Among gold miners AngloGold was down 3.83 percent to 161.81 rand, Gold Fields fell 53 cents to 66.97 rand while Harmony was up 71 cents to 73.71 rand.

Platinum miner Anglo Platinum was up 6.79 percent to 582 rand, Impala Platinum gained 1.17 percent to 130 rand and Lonmin was up 6.54 percent to 259.95 rand.

Financial services group Old Mutual inched up eight cents to 11.55 rand while Sanlam was up 4.94 percent to 17 rand.

Banker Nedbank gained three percent to 92.70 rand FirstRand added 2.64 percent to 15.14 rand.

Elsewhere on the JSE, brewer SABMiller soared 8.57 percent to 159.60 rand and Tiger Brands climbed 3.79 percent to 142.19 rand.

Among telecommunications groups, MTN was up 1.23 percent to 102.50 rand and Telkom came off 1.41 percent to 104 rand.

Technology company Altron was down 6.56 percent to 28.50 rand. This morning the company reported a 16 percent rise in diluted adjusted headline earnings per share to 179 cents for the six months ended August from 154 cents a year ago. Diluted HEPS for the period were up 12 percent at 171 cents from a previous 152 cents.