[miningmx.com] – KUMBA Iron Ore, once valued at R619 per share, will take its leave of Johannesburg’s Top 40 shares following a decline in the price of iron ore to $50/t from $160/t in 2013, said BDLive.
Most exchange traded funds (ETFs) like the Satrix Top 40 and other emerging market ETFs will no longer include it (in their baskets),” Drikus Combrink, CEO of investment company Capicraft told BDLive.
“As liquidity drops, (Kumba) is less inclined to attract bigger fund managers, especially hedge fund managers, who prefer to trade rather than hold stocks for the long term,” said Combrink. “This will result in their share price dropping further.”
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