The company’s 14-day relative strength index, which shows how rapidly prices advanced or dropped during a specified time period, was 73 on Feb. 24, the highest in a month. A reading of 70 or above signals to some technical analysts that prices are set to decline. The stock jumped 8.8 percent on Feb. 23 and Feb. 24, reaching the highest on record, after it said adjusted earnings per share rose by as much as 28 percent in the six months through December.
“You will have profit taking after” such a jump in share price, Warrick Selzer, a Johannesburg-based technical analyst with Wealth Skills, said by phone. “The sentiment in the banking sector has certainly swung from being cautious to being positive.”
The stock may rise to 26.50 rand in the next month and is likely to find support at 23.25 rand, Selzer said. “The banks have some good favor at the moment, simply because the economy may be stabilizing,” Selzer said.
South Africa’s gross domestic product grew 3.1 percent in the three months through December, from 1.4 percent the previous quarter, a report tomorrow will show, according to the median estimate of 15 economists in a Bloomberg survey.
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