Fall­ing iron ore prices weigh on lo­cal bourse

The Star Early Edition - - PRICES - Reuters

STOCKS fell again yes­ter­day, dragged lower by iron ore com­pa­nies after the price of the steel­mak­ing in­gre­di­ent fell to a fresh five-year low.

The Top40 in­dex lost 0.62 per­cent to 44 532.09. The broader all share in­dex was down 0.44 per­cent to 50 150.48.

Kumba Iron Ore was the big­gest de­cliner on the Top40 in­dex, slip­ping 3.09 per­cent to R251, as the price of iron

ore was hit by over­sup­ply and ex­pec­ta­tions of lower de­mand in top con­sumer China.

BHP Bil­li­ton re­treated 1.44 per­cent to R282.36, while Arcelor

Mit­tal slid 3.46 per­cent to R31.

“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 in­dex of gold com­pa­nies rose on the back of stronger prices for the yel­low metal. It has gained 16 per­cent this week. Gold Fields led the in­dex up yes­ter­day, jumping 7.3 per­cent to R49.36.

Tiger Brands fell 0.33 per­cent to R376.30 after the company wrote down its money-los­ing Nige­rian unit Dan­gote Flour Mills fol­low­ing a re­view of util­i­sa­tion lev­els.

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