Thursday, September 24, 2020

BSE moves ÔÇôup by double digit

The Botswana Stock Exchange (BSE) bubbled ÔÇôup to 11.8 percent in the second quarter of the year at the back of the increasingly buoyant local market, brokers said Friday.

Five local companies pushed up the market to 11.8 percent and were led by Botswana Insurance Holdings Limited and Turnstar at 28 percent each from the last quarter at the end of March.

BIHL moved up 28 percent better as was Tursnstar, while John Mynardart, of Furnmat, shot-up 22 percent and Chobe Holdings and Standard Chartered stood at 18 percent each.

“ All banks performed quite well, but we had some disappointments from Med Rescue by 8 percent and ABC was down four percent and African Banking Corporation was down four percent ,” Alphonse Ndzindge said.

“The BIHL showed a re-rating as valuation went up. However, there was a lot of demand for banking stock for the past six months,” he added.

The cash making institutions ÔÇô the banking sector made a lot of money, closely followed by FurnMart all because of its liquidity.

Furnmat, which has close to 68 outlets in Botswana, Namibia and South Africa, saw it helping the index pushing up from 3946.4 to 4411.16 from the last quarter.

“I think nobody is expecting to gain within the next 12- 18 months on Furmart because of its liquidity problems,” he added.

The outfit is engaged in dome of the trail-blazing operations in the regionÔÇöincluding the opening of outlets in the northern province and is likely to move to KwaZulu Natal province.

Standard Chartered which released its bell-weather banking results last week was 18 percent up- much to the distruction of its peers.

BIHL moved from 445 thebe last quarter to 570 thebe, Turnstar from 90 thebe to 115 thebe or 28 percent. The results were further boosted by Sefalana Holding, the turned around milling company which rose 100 percent to Friday from the beginning of the year and seven percent by the quarter. All the attributes were allocated to Foods Botswana.

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