South African Building-Stocks Rally May Be Overheating: Chart

(Bloomberg) -- A rally in South African building and construction stocks is under threat as shares breach a level that spurred a 20 percent loss the last time it was crossed. The FTSE/JSE Africa Construction & Materials has gained 29 percent since falling to an 11-year low in January. The move has pushed the relative strength index to the highest since January 2006, signaling the comeback may be about to end. 

To contact the reporter on this story: Neo Khanyile in Johannesburg at nkhanyile@bloomberg.net. To contact the editors responsible for this story: Robert Brand at rbrand9@bloomberg.net.