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Johannesburg - South African stocks edged lower on Monday, as investors sold off some recent big gainers, such as Mondi Plc, that they deemed too expensive after this year's record run.
Shares of Adcock Ingram crept up 0.5% to R70.41 after industrial conglomerate Bidvest offered R70 a share in a bid to increase its stake in the drugmaker to a little over a third.
Bidvest's CEO Brian Joffe is looking to block a $1.2bn bid for Adcock by a Chilean firm by increasing Bidvest's stake in the drugmaker and launching a court action against the rival bid.
"It's clever deal-making by Brian Joffe but at R70 a share for a 34.5% stake, thanks but no thanks," said Jean Pierre Vester, a fund manager at Johannesburg-based 360ne Asset Management, which has an 1.8% stake in Adcock.
Shares of Bidvest were little changed.
The benchmark Top-40 index declined 0.74% to 39 871.53. The index has hit a string of record highs this year and is still trading at a price-to-earnings ratio of nearly 19, making it one of the most expensive emerging equity markets in the world.
The broader All-Share index dropped 0.7% to 44 659.37.
Shares of paper maker Mondi Plc fell 2.9% to R163.79. Shares of the company are up more than 80% this year, making it the best performing stock on the Top-40 index.
Index heavyweight SAB Miller declined 1.7% to R518.48. Its shares are up more than 35% this year, and are trading at 24 times earnings, making it the eighth most expensive stock on the Top-40.
Trade was thin, with just 118 million shares changing hands, according to preliminary bourse data. Decliners outnumbered advancers 190 to 109, while 67 shares were unchanged.
Shares of Adcock Ingram crept up 0.5% to R70.41 after industrial conglomerate Bidvest offered R70 a share in a bid to increase its stake in the drugmaker to a little over a third.
Bidvest's CEO Brian Joffe is looking to block a $1.2bn bid for Adcock by a Chilean firm by increasing Bidvest's stake in the drugmaker and launching a court action against the rival bid.
"It's clever deal-making by Brian Joffe but at R70 a share for a 34.5% stake, thanks but no thanks," said Jean Pierre Vester, a fund manager at Johannesburg-based 360ne Asset Management, which has an 1.8% stake in Adcock.
Shares of Bidvest were little changed.
The benchmark Top-40 index declined 0.74% to 39 871.53. The index has hit a string of record highs this year and is still trading at a price-to-earnings ratio of nearly 19, making it one of the most expensive emerging equity markets in the world.
The broader All-Share index dropped 0.7% to 44 659.37.
Shares of paper maker Mondi Plc fell 2.9% to R163.79. Shares of the company are up more than 80% this year, making it the best performing stock on the Top-40 index.
Index heavyweight SAB Miller declined 1.7% to R518.48. Its shares are up more than 35% this year, and are trading at 24 times earnings, making it the eighth most expensive stock on the Top-40.
Trade was thin, with just 118 million shares changing hands, according to preliminary bourse data. Decliners outnumbered advancers 190 to 109, while 67 shares were unchanged.
