Johannesburg - Stocks were weaker on Tuesday, as the main bourse was dragged lower by miner Kumba Iron Ore after the company said it was still not in a position to pay shareholders a dividend despite seeing a doubling in earnings.
The benchmark JSE Top40 index dropped 1.1 percent to 45437.28 points while the all share index declined 0.93 percent to 52465.64 points.
Kumba Iron Ore, a unit of Anglo American, retreated 7.16 percent to R209.35 by the close after announcing it would hold off on paying a dividend because of a volatile market outlook.
“The market doesn’t like that because it means there’s nothing in it for them for the next six months to a year,” Independent Securities trader, Ryan Woods said.
Read also: Kumba sees 131% improvement in earnings
Among the biggest fallers were Northam Platinum, which tumbled 5.88 percent to R51.06, ArcelorMittal which was down 3.17 percent to R13.75 percent and Impala Platinum, which dropped 2.97 percent to R52.89.
Meanwhile, Wall Street edged lower yesterday afternoon after Federal Reserve chairperson Janet Yellen said the central bank would likely need to raise interest rates at an upcoming meeting, but expressed uncertainty over economic policy under the Trump administration.
She did not say if the Fed still planned for three rate hikes this year.