Gains may be capped by val­u­a­tion con­cerns

Weekend Argus (Saturday Edition) - - BUSINESS -

SOUTH African stocks rose mod­estly yes­ter­day af­ter scal­ing record highs ear­lier in the ses­sion but next week gains may be capped by con­cerns about val­u­a­tion.

Swiss lux­ury firm Richemont was among the top blue-chip ad­vancers of the day, ris­ing 1.40 per­cent to R103.51.

Pri­vate bank­ing group Von­to­bel up­graded its rat­ing on the maker of Cartier watches to “buy” from “hold”, say­ing it was well po­si­tioned to ben­e­fit from ex­pected growth in the mar­ket for high-end jew­ellery.

The mar­ket has had a record run this year, hit­ting new peaks on a reg­u­lar ba­sis, but some an­a­lysts have warned the fun­da­men­tals do not sup­port such a per­for­mance. Charts are also not favourable.

The 14-day RSI – a mo­men­tum in­di­ca­tor fol­lowed by some tech­ni­cal an­a­lysts – for both in­dices are very close to over­bought ter­ri­tory.

The Top- 40 in­dex ended 0.17 per­cent higher at 40 729.18 af­ter ear­lier hit­ting a life high. The wider All-share in­dex added 0.1 per­cent to 45 561.08 af­ter fall­ing just short of a record peak. Other movers in­cluded African Bank In­vest­ments. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.