S. Africa stocks backtrack on value worries

By David Dolan

JOHANNESBURG (Reuters) - South African stocks retreated from a record high on Friday, edging down half a percent after retailers Shoprite and Woolworths declined on concerns their valuations may be stretched from a recent surge.

Shares of Investec fell nearly 1 percent after the investment bank and asset manager said it would pay about $42 million for unlisted Irish financial firm NCB.

Lower-than-expected U.S. growth data also blunted appetite for equities, especially in South Africa, where the broad All-share index on Thursday finished above 34,000 for the first time in its 17-year history.

"We are in overbought territory," said Mitchell Gannaway, a trader at Thebe Stockbroking.

"The U.S. GDP figures, slightly below expectations, ... gave people a reason to do a bit of selling."

The All-share index finished down 0.5 percent at 33,895.02. On Thursday it posted a record high of 34,079.54.

The benchmark Top-40 index declined 0.6 percent to 30,324.28. On Thursday it hit its highest since May 2008.

Shares of Shoprite Holdings fell 1.5 percent to 129.63. The discount retailer is trading at a lofty 26 times earnings, making it one of the most expensive blue chips in Johannesburg.