S.Africa stocks retreat from two-day gains
JOHANNESBURG (Reuters) - South African stocks edged down on Thursday, as shares of Assore and other commodities firms were hit by concerns of overheated valuations, while Investec slumped after it said it expected lower full-year earnings.
Shares of media and e-commerce firm Naspers jumped for a second day, hitting a record high, after Chinese internet giant Tencent Holdings Ltd, in which Naspers holds a 30 percent stake, posted a rise in fourth-quarter net profit.
"Futures investors, who are trader types, probably are rather happy to stay on the sidelines at this stage because of what has happened over the last few days," said Byron Lotter, a portfolio manager at Vestact Asset Management.
"I think this rally is sustainable long term. Equities still have quite a long way to go, there is still a lot of liquidity out there that still needs to be pumped into the equity markets."
South Africa's blue-chip Top-40 index fell 0.61 percent to 30,334.04. The broader All-share index also edged 0.61 percent lower to 34,215.30.
Shares of base metals miner Assore fell 1.6 percent to 250 rand. Its shares have jumped 23 percent over the last three months.
Shares of Investec, which is also listed in London, fell 3.28 percent to 47.55 rand, making it the top loser on the Top-40 index.
The $2 billion bank said full-year earnings probably fell as much as 27 percent, hurt by a poorly performing investment bank and a loss in its Australian unit.
Shares of Harmony Gold fell 2.62 percent to 85.06 rand and brewer SABMiller shed 2.08 percent to close at 311.41 rand.
Decliners outnumbered advancers by 172 to 118. A total of 67 stocks were unchanged.
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S.Africa stocks retreat from two-day gains