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Johannesburg - South African stocks ended down for the third straight session on Tuesday, inching lower as Mondi and other star performers of 2013 were hit by concerns their prices are overblown.
Losses were limited as investors shifted into banks such as Standard Bank, which underperformed the market last year.
Johannesburg's benchmark index climbed nearly 18 percent in 2013, although for overseas investors the performance was eroded by the crumbling rand currency. In dollar terms the index fell 5 percent.
A similar trend could emerge in 2014, said Mohammed Nalla, head of strategic research at Nedbank Capital.
"Local equities will likely enjoy a tailwind from strong global equities. But on a relative basis, they are likely to continue to underperform developed markets and more attractive developing markets in hard currency terms," he said.
The benchmark Top-40 index edged down 0.08 percent to 41,132.70.
The broader All-Share index inched down 0.07 percent to 45,867.52.
Papermaker Mondi, which is trading at a heady 25 times earnings after an 84 percent rise over the last 12 months, dropped 0.9 percent to 176 rand.
Luxury goods maker Richemont, which has risen 50 percent in the last 12 months, dropped 2.3 percent to 102.45 rand.
Standard Bank gained 2 percent to 128.86 rand. Africa's largest lender is trading at around 11 times its earnings, compared to the Top-40's average price-to-earnings ratio of 19.
Likewise, Barclays Africa Group added 1.5 percent to 132.30 rand.
Trade was light, with 116 million shares changing hands, according to preliminary bourse data.
Losses were limited as investors shifted into banks such as Standard Bank, which underperformed the market last year.
Johannesburg's benchmark index climbed nearly 18 percent in 2013, although for overseas investors the performance was eroded by the crumbling rand currency. In dollar terms the index fell 5 percent.
A similar trend could emerge in 2014, said Mohammed Nalla, head of strategic research at Nedbank Capital.
"Local equities will likely enjoy a tailwind from strong global equities. But on a relative basis, they are likely to continue to underperform developed markets and more attractive developing markets in hard currency terms," he said.
The benchmark Top-40 index edged down 0.08 percent to 41,132.70.
The broader All-Share index inched down 0.07 percent to 45,867.52.
Papermaker Mondi, which is trading at a heady 25 times earnings after an 84 percent rise over the last 12 months, dropped 0.9 percent to 176 rand.
Luxury goods maker Richemont, which has risen 50 percent in the last 12 months, dropped 2.3 percent to 102.45 rand.
Standard Bank gained 2 percent to 128.86 rand. Africa's largest lender is trading at around 11 times its earnings, compared to the Top-40's average price-to-earnings ratio of 19.
Likewise, Barclays Africa Group added 1.5 percent to 132.30 rand.
Trade was light, with 116 million shares changing hands, according to preliminary bourse data.
