South African stocks ended sharply lower on Thursday with banks among the worst losers following worse-than-expected PPI inflation data, while a weakening gold price sparked a sell-off among miners, traders said.

The JSE's broader all share index ended 1.72 percent lower at 31 194.010, weighed by 2.62 percent and 2.35 percent drops in banks and resources respectively. The gold mining index was off 0.95 percent and the platinum mining index gave up 1.41 percent. Industrials lost 0.78 percent and financials were down 1.71 percent.

The rand was bid at 7.70 to the dollar from 7.67 when the JSE closed on Wednesday, while gold was quoted at $890.92 a troy ounce from $902.70/oz at the JSE's last close.

"Gold's slide is not helping miners. It looks like it's headed for the $885/oz level at this speed and that's not good mining stocks," one trader said.

Banks and other interest rate-sensitive stocks were also under pressure after factory gate inflation data pretty much sealed the case for another interest rate hike in June.

"It's going to get even bumpier for banks and retailers if the economists are talking about the possibility of 100-basis-points hike in the current cycle," another trader said.

Official data showed that PPI rose by 11.8 percent year-on-year in March, above the 10.9 percent the market had expected and the 11.2 percent year-on-year increase in February.

Banking group Standard Bank tumbled 2.77 percent, or 2.49 rand, to 87.50 rand, FirstRand weakened 2.02 percent, or 33 cents, to 16 rand, Nedbank slipped 1.75 percent, or two rand, at 112 rand and Absa slumped 4.08 percent, or 4.10 rand, to 96.40 rand.

Retailers were also among the bourse's worst casualties as interest rates continue to mount pressure on consumers. Specialist retailers NuClicks ended nine cents weaker at 13.81 rand, after sinking by more than four percent at one point during the session. It earlier reported a 25.8 percent rise in diluted headline earnings per share to 67.8 cents for the six months ended February from 53.9 cents previously, but warned that the trading environment would get tougher in the coming year.

Clothing and grocer retailer Woolies was down 2.26 percent, or 27 cents, to 11.70 rand and furniture group Lewis was off 1.31 percent, or 50 cents, at 37.75 rand.

Pressured by a weakening gold price, which fell in tandem with the oil price as the dollar strengthened, diversified miner BHP Billiton fell 3.51 percent, or 10.15 rand, to 278.65 rand and Anglo American slipped 2.12 percent, or 11.18 rand, to 515.82 rand.

Among gold counters, AngloGold Ashanti was down 2.46 rand to 278.90 rand and Gold Fields weakened 1.63 percent, or 1.75 rand, to 105.80 rand.

Synthetic fuels maker Sasol dipped 2.42 percent, or 10.99 rand, to 444 rand on profit taking and the weakening oil price, traders said.

Among platinum miners, Aquarius Platinum reversed earlier gains to end one rand weaker at 115 rand. It earlier reported a decline in production to 191 942 PGM ounces for the quarter ended March from 228 193oz in the December quarter. The group said the reduced production reflected challenging operating conditions in the quarter in both South Africa and Zimbabwe.

Anglo Platinum was down 1.92 percent, or 25 rand, to 1280 rand and Impala Platinum shed 1.09 percent, or 3.50 rand, to 318 rand.

ICT firm Altech was up 50 cents or one percent at 50.50 rand. It earlier reported a 21 percent increase in diluted headline earnings per share to 494 cents for the year ended February from 406 cents before. HEPS were up 23 percent to 511 cents from 414 cents previously.

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