Gains may be capped by valuation concerns
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