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Johannesburg - South African stocks dipped again on Wednesday, dragged lower by iron ore companies after the price of the steel-making ingredient fell to a fresh five-year low.
Kumba Iron Ore was the biggest decliner on the benchmark Top-40 index, slipping 3.09% to R251, as the price of iron ore was hit by oversupply and expectations of lower demand in top consumer China.
Kumba touched a five-year-low and has lost almost half its share value in 2014. It is the second-worst performing mining company this year on the Johannesburg's All-share index, suffering from lower prices.
The world's top producer of iron ore, BHP Billiton, retreated 1.4% while steel producer ArcelorMittal slid 3.46%.
"Weakness in the Asian markets are putting pressure on the iron price and growth prospects globally are looking poor, but it seems like it has reached the bottom," said Bruno Van Eck at Thebe Stockbroking.
The benchmark Top-40 index fell by 0.62% to 44 532. The broader All-Share index was down 0.44% to 50 150.
The index of gold companies rose on the back of stronger prices for the yellow metal. It has gained 16% this week.
Consumer goods maker Tiger Brands fell 0.33% after the company wrote down its money-losing Nigerian unit Dangote Flour Mills following a review of utilisation levels.
About 184 million shares changed hands, slightly above last year's daily average 176 million shares.
