S.Africa stocks close near record highs, look pricey
* JSE looks pricey by emerging mkt standards
* Main indices just shy of life highs
JOHANNESBURG Nov 1 (Reuters) - South African stocks rose modestly on Friday after scaling record highs earlier in the session but next week gains may be capped by concerns about valuation.
Swiss luxury firm Richemont was among the top blue-chip advancers of the day, rising 1.40 percent to 103.51 rand.
Private banking group Vontobel upgraded its rating on the maker of Cartier watches to "buy" from "hold", saying it was well positioned to benefit from expected growth in the market for high-end jewelry .
The market has had a record run this year, hitting new peaks on a regular basis, but some analysts have warned the fundamentals do not support such a performance. Charts are also not favourable at the moment.
The 14-day RSI - a momentum indicator followed by some technical analysts - for both indices are very close to overbought territory.
"Other momentum indicators are also slowing," said analyst George Glynos at financial consultancy ETM, speaking about the Top-40.
"This move looks like it is running out of steam and resistance over 40,840 looks strong," he said.
The Top-40 index ended 0.17 percent higher at 40,729.18 after earlier hitting a life high. The wider All-share index added 0.1 percent to 45,561.08 after falling just short of a record peak.
The Top-40 index is trading at 19.8 times earnings, according to Thomson Reuters data. Measured by its price-to-earnings ratio, Johannesburg is now the most expensive among 30 emerging stock markets tracked by Thomson Reuters.
Other movers included African Bank Investments, which swung wildly, losing 8 percent at one point and then gaining over 4 percent before ending flat.
The mass-market lender offered its shareholders a hefty 38.7 percent discount to take part in a 5.5 billion rand ($550 million) share issue to repair its balance sheet under pressure from rising bad loans.