From Reuters Africa

South African share prices pulled back on Monday after disappointing earnings such as Bidvest’s, while investors took money off the table following a strong rally.

Johannesburg’s Top-40 index hit a life high last week but sentiment dampened with the finance minister’s introduction of budget measures that could hurt South Africans’ purchasing power.

The benchmark index lost 0.8 percent to 46,774, while the wider All-share index shaved off 0.7 percent to 52,953.

“The market was taking a little bit of a breather, it had moved up quite strongly,” said Vasili Tirasis, a trader BP Bernstein. “It was looking a little top heavy.”

The Top-40’s 14-day RSI – a momentum indicator tracked by chartists – was above 70 on Friday, suggesting prices were in overbought territory. It corrected to just below 62 in Monday’s session.

Tirasis said that Bidvest Group’s 5 percent increase in half-year earnings had dampened investor appetite for the industrial conglomerate’s stock.

Read more at Reuters Africa