South African stocks fell just over six percent in late afternoon trade on Wednesday, adding to earlier losses after a weak start in New York and pretty much erasing gains achieved in the past two days.

At 4.30pm, shortly before the market close, the JSE's benchmark all share index was down 5.91 percent, or 1306.881 points to 20 810.180, paced by a massive 13.11 percent plunge in the platinum mining index as white metal prices buckled under recession fears. Platinum was last trading more than three percent weaker at $985.

"We are seeing a massive sell off across the board after the US retail sales fell to their worst level in three years," said Martin Lentsoane, a trader at Cortex Securities.

US retail sales took the sharpest drop in three years during September, falling by 1.2 percent as a weak job market and the credit crunch scared consumers and slowed the big engine of the economy.

Dow Jones Newswires reports that US stocks slid and the DJIA was down by more than 270 points after dire retail sales and inflation data, and lacklustre corporate earnings, indicated that governments could not rescue the economy along with the banking system.

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