Shares on the Botswana Stock Exchange (BSE), continued on a downward spiral Monday as┬áinvestors were in a stampede to exit the market but brokers were pinning their hopes on the reporting period of the blue chip companies,┬ádue next month,┬áto give a better direction.
Investors started to fight for the exit route en masse last week after Finance and Development Planning Minister, Baledzi Gaolathe, announced a massive national budget that will be coupled with a deficit. That worsens worries about the impact of the global credit crunch on the southern African diamond rich country.
“I think this is a question of demand and supply that is pushing the overall share prices down. We need something that can attract buyers to the market to restore confidence that will drive away that share price overhang,” Gregory Matseke, of Capital Securities, said┬áat┬áMonday close.
The Domestic Company Index (DCI) eased 0.05 percent to 6758.84 points from Friday close although on┬áthin volumes.
The market was pressured by the two biggest counters on the BSE, Barclays Bank of Botswana and First National Bank of Botswana, each of whom took a shave of 1 thebe┬áper share to end the day at 579 thebe and 224 thebe, respectively.
One of the losers for the day was SefcashÔÇöa retail stockÔÇöthat fell 25 thebe to 1450 thebe.
“In terms of volumes, it appears like investors are slowly coming back but┬ádelayed by bargains on the market.
“However, we ┬áhope that the┬á market will get a clear direction after the blue chip reporting period which is in March,” Matseke added.
Barclays and FNB are the two dominant giants on the stock exchange and will be releasing the full year and half yearÔÇörespectively ÔÇô to December 31, 2008.
Meanwhile, on the foreign company index, only the energy diversified Aviva Corporation ÔÇöthe Australian and BSE listed company traded by adding 5 thebe to 50 thebe.