South African stocks falter

South African stocks fell on Monday as investors dumped index heavyweights such as Barclays Africa and Shoprite on concerns about valuations. Shares of retailer Woolworths tumbled 7.7 percent to 74.78 rand as it traded both ex-dividend - without the right to its latest dividend payment - and ahead of the listing of new shares from a recent rights offer.
Many investors are betting South Africa is likely to see little gains in the remainder of the year, citing inflated valuations. Johannesburg is currently at a price-to-earnings ratio of more than 18, making it the fifth-most expensive market among more than 30 emerging market equity indices. The benchmark Top-40 index fell 0.4 percent to 46,204. The broad All-Share index dropped 0.4 percent to 51,610. Lender Barclays Africa, which has advanced more than 30 percent this year, fell 2 percent to 172 rand.