The JSE closed over five percent in the red on Thursday in line with a weak Dow and other global markets, which remained mired under the weight of negative conditions. The latest snippet of bad news in the US comes in the form of unemployment claims striking a 16-year high.

Plummeting platinum counters and sharply weaker resource and gold stocks also pressured heavily on the local bourse.

By 5pm the all share index had fallen 5.02 percent, pulled down by a 16.51 percent tumble in platinum stocks, a 9.82 percent decline in resources and a 6.67 percent drop in gold miners. Industrials were down 2.16 percent, banks shed 2.12 percent and financials gave up 1.56 percent.

The rand was last bid at 10.59 to the dollar from 10.31 when the JSE closed on Wednesday, while gold was last quoted at $740.15 a troy ounce from $758.60 at the JSE's last close.

The platinum price was at $789/oz from its previous close of $807.50 and Brent crude was at $49.13 per barrel from its overnight close of $51.72.

"Global markets are getting a hiding," a local trader said.

"World markets are down, the Dow opened weaker on the back of the jobless data and we have just been following those falls," he said.

Asked what the rand had been doing for the local market, he said: "The rand remained in weakness today and didn't really move around much. It is not doing anything for the market.

"When the market collapses and foreigners are also sellers, it weakens the rand," he said. "It's a double whammy. Both the rand and equities are very weak."

Earlier, Asian markets were sharply lower, with the Nikkei closing 6.9 percent lower and the Hang Seng losing 5.5 percent.

Dow Jones Newswires reports that European stocks slumped on Thursday as more signs emerged that the global economy faces some turbulent months ahead. A US report that showed the number of workers filing new claims for unemployment benefits reached a 16-year high last week served to further undermine already edgy investors fretting about the severity of a global economic recession.

In London, the FTSE was down 2.33 percent.

US stocks fell and the DJIA hit its lowest intraday mark in more than five years after new unemployment claims spiked to their highest level since July 1992 and as deflation fears spread.

The DJIA was last down 2.30 percent.

On the JSE, Anglo American lost 9.81 percent to 170 rand and BHP Billiton fell 10.65 percent to 119.99 rand.

Sasol gave up 5.79 percent to 221 rand.

Highveld Steel weakened 5.26 percent to 54 rand and Kumba Iron Ore lost 3.77 percent to 135.01 rand, but ArcelorMittal was up 1.68 percent to 63.55 rand.

Gold miner AngloGold Ashanti was off 4.92 percent to 154.99 rand, Gold Fields shed 9.38 percent to 58 rand and Harmony weakened 6.72 percent to 62.50 rand.

Among platinum miners, Anglo Platinum plummeted 16.13 percent to 390 rand and Impala Platinum dipped 17.18 percent to 94 rand. The miner said earlier that it has suspended its share buy-back programme due to the current global market conditions. The company also said it was adopting a cash conservation programme, reviewing capital expenditure plans and all projects in light of the global economic downturn and consequent rapid decline in platinum group metal prices.

Among diversified miners, African Rainbow gave up 5.87 percent to 80 rand, Exxaro weakened 11.24 percent to 55.03 rand and Hulamin was off 7.52 percent to 14.52 rand.

Elsewhere on the JSE, brewer SABMiller dropped 2.68 percent to 146.46 rand, Barloworld lost 8.78 percent to 40.50 rand, Tiger Brands fell 4.59 percent to 124 rand and Imperial lost 1.96 percent to 44.62 rand. The industrial conglomerate said earlier that its motor retail, import and distribution unit was unable to deliver acceptable returns due to tough trading conditions.

Among bankers, Standard Bank was down 1.82 percent to 75.60 rand, Absa shed 5.94 percent to 95 rand and FirstRand lost 2.84 percent to 13.70 rand.

Financial services group Old Mutual was down 2.07 percent to 8.03 rand but RMB Holdings added 3.33 percent to 22.94 rand.

Liberty Group was up 1.67 percent to 61 rand. The group said earlier that capital market conditions were extremely volatile during the third quarter of 2008 and negatively impacted the group's financial performance.

Among retailers, Pick n Pay gave up 2.18 percent to 31.79 rand and Steinhoff lost 4.53 percent to 11.60 rand.

Construction group Aveng was off 8.07 percent to 25.75 rand, Murray & Roberts fell 3.87 percent to 42.20 rand and WBHO was down 3.70 percent to 89.17 rand.

Telecommunication group MTN Group was down 2.94 percent to 98.50 rand and Telkom fell 6.64 percent to 98.50 rand.

Media and entertainment group Avusa lost 1.15 percent to 21.50 rand. The group earlier reported a six percent rise in diluted headline earnings per share to 93 cents for the six months ended September from 88 cents a year ago.

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