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Johannesburg - South African stocks retreated from record highs on Thursday, unmoved by the central bank's rate hike decision as a downbeat tone in major overseas markets and concerns about valuation weighed on sentiment.
Woolworths [JSE:WHL] was among the biggest decliners on the blue-chip index, falling 2.2% to R81.49 after hitting three record highs in row this week.
The upscale food and clothes retailer also clinched its biggest acquisition ever, the $2bn purchase of Australia's David Jones and gave a sales update that met expectations.
Overall, investors were spooked by the spectre of greater geopolitical tensions after the West tightened sanctions against Russia and growing worries that South African equities were overpriced.
But traders said the overall momentum remained positive for domestic equities as yield-hungry global investors push fundemental considerations aside.
"While intellectual appraisal would undoubtedly highlight the notion that equities are no longer inexpensive at current levels, for the moment the power of 'trend' completely dominates the transactional background," brokerage house Imara SP Reid said in a note.
The JSE Top 40 index retreated 0.65% to 46 642 and the broader All-share index pulled back 0.55% to 51 789.
The All-share index has made a string of lifetime records this year, bringing gains to more than 11%. It is trading at a price-to-earnings ratio of just above 16 times, compared with about 6 times for Russia's RTS index
A total of 131 million shares changed hands, well below last year's daily average of about 176 million shares. A total of 117 shares advanced, while 180 declined and 49 were unchanged.
Woolworths [JSE:WHL] was among the biggest decliners on the blue-chip index, falling 2.2% to R81.49 after hitting three record highs in row this week.
The upscale food and clothes retailer also clinched its biggest acquisition ever, the $2bn purchase of Australia's David Jones and gave a sales update that met expectations.
Overall, investors were spooked by the spectre of greater geopolitical tensions after the West tightened sanctions against Russia and growing worries that South African equities were overpriced.
But traders said the overall momentum remained positive for domestic equities as yield-hungry global investors push fundemental considerations aside.
"While intellectual appraisal would undoubtedly highlight the notion that equities are no longer inexpensive at current levels, for the moment the power of 'trend' completely dominates the transactional background," brokerage house Imara SP Reid said in a note.
The JSE Top 40 index retreated 0.65% to 46 642 and the broader All-share index pulled back 0.55% to 51 789.
The All-share index has made a string of lifetime records this year, bringing gains to more than 11%. It is trading at a price-to-earnings ratio of just above 16 times, compared with about 6 times for Russia's RTS index
A total of 131 million shares changed hands, well below last year's daily average of about 176 million shares. A total of 117 shares advanced, while 180 declined and 49 were unchanged.
