Retailers also featured on the decliners' list, a day after a study found unlabelled traces of donkey, water buffalo and goat included as ingredients in local beef products.

The benchmark JSE Top 40 index <.JTOPI> fell 0.82 percent to 34,854.04 and the broader All-share index <.JALSH> was off 0.74 percent at 39,275.37.

South Africa, the continent's top greenhouse gas producer, plans to tax carbon emissions from January 2015, a move likely to hit profits of companies such as ArcelorMittal's South African unit and energy firm Sasol.

ArcelorMittal (>> ArcelorMittal South Africa Limited) took the biggest hit from the government announcement, closing down 6.09 percent to 28.83 rand after dipping to its lowest level this year.

"They have been spending heavily on curbing pollution in recent years," said Stephen Meintjes, an analyst at brokerage Imara S.P. Reid in Johannesburg.

Petrochemicals group Sasol (>> Sasol Limited), which has criticised the carbon tax emission, gave up 1.97 percent to 379.95 rand and Kumba Iron Ore (>> Kumba Iron Ore Ltd.) skidded 2.46 percent to 574.50 rand.

Retailers also fell on worries an industry-wide probe into meat and food labelling could trigger product recalls.

Upscale food retailer Woolworths (>> Woolworths Holdings Limited) was down 3.12 percent at 67 rand and Africa's biggest grocer Shoprite (>> Shoprite Holdings Ltd) was off 1.95 percent at 175.78 rand.

On the gainers' list, Grindrod (>> Grindrod Limited) climbed 2.18 percent to 17.37 rand after the shipping firm beat estimates with a 22 percent rise in full-year profit.

Casino operator Grand Parade Investments (>> Grand Parade Investments Ltd) rallied 2.86 percent to 3.60 rand after posting a 12 percent rise in first-half profit.

More than 180 million shares changed hands, according to preliminary bourse statistics, with decliners outpacing advancers 175 to 112, while 65 shares were unchanged.

(Reporting by Tiisetso Motsoeneng; Editing by Jon Herskovitz)