Lower metals prices hit the mining index, which closed 3.97% weaker, led by Anglo American Platinum, which was down 9.41%. Other miners like Sibanye Stillwater, Anglo American PLC, BHP Group, Impala Platinum and DRDGOLD fell 6.73%, 5.18%, 4.67%, 4.58 and 4%, respectively.
Gold prices stalled on Wednesday as caution ahead of the U.S. Federal Reserve's policy decision due later in the day held investors back from making large bets. Other metals like platinum and palladium fell. [GOL/]
"Equity markets are paring gains ahead of the Federal Reserve announcement on Wednesday, perhaps a little caution ahead of the final decision of the year," Craig Erlam, senior market analyst at OANDA said in a note.
"A dovish Fed today could seal the deal and deliver a Santa rally for the yellow metal in the final weeks of the year."
Economically sensitive sectors such as consumer discretionary were also among the weakest performers after data showed that retail sales fell more than expected in October as consumers felt the pinch of high living costs.
"The high-cost environment means that shoppers likely favoured non-durable household goods," said Jee-A van der Linde, a senior economist at Oxford Economics.
"We believe consumers will continue to feel the squeeze of high living costs, after the South African Reserve Bank hiked interest rates by 75 basis points in November, with more interest rate hikes expected in early 2023."
This data offset improved sentiment on inflation, which slowed to 7.4% year on year in November, pointing to the gradual easing of price pressures in South Africa.
Overall, the Johannesburg All-Share index fell 2.03% while the Top-40 index declined 2.15%.
In the currency market, by 1619 GMT, the rand traded at 17.1850 against the dollar, 0.3% stronger than its Tuesday close on eased headline inflation.
The government's benchmark 2030 bond was firmer, with the yield falling 2 basis points to 10.220%.
(Reporting by Nqobile Dludla; Editing by Jane Merriman)
