Monday, March 1, 2021

DCI: Bulls will get louder

The Botswana Stock Exchange (BSE)’s DCI maintained its gains on the close of business on Friday as the market continues to be guided by the reporting period. At the Friday close, the DCI had gained six basis points, extending its year to date returns to 1.8 percent with Motswedi Securities saying the uptrend of some of the counters was because most of the blue chips have released their financial results.

“With some still trading under cautionary and some expected to release results we could see the bulls getting louder and louder, as investors attempt to unlock value,” said the research house.

There were 31.3mn shares worth of P117 million that exchanged hands; (one if the highest turnover for the year thus far) with Choppies trading the bulk of those trades of 62.8 percent while Letshego traded 29 percent.
Barclays Bank of Botswana, which recently announced better results after a tough period, led the rally as it surged by 5.3 percent to trade at 400thebe as investors embraced their FY results.

Sefalana Holdings Limited on the other hand, has been on a consecutive weekly winning streak since the beginning of the year, on positive sentiments towards its future outlook.

“The retail consortium is currently engaged in negotiations with third parties which, if successfully concluded might result in transactions that may impact on its share price, as indicated by a cautionary statement released by the group,” said Motswedi Securities.

BIHL and Chobe also closed in the black reaching their new 12 month highs of 1221thebe and 457thebe respectively.

Engen plummeted by 1.5 percent trading at 935thebe. “The petroleum giant released a trading statement stating that the consolidated profits for the year ended 31 December 2014 will be significantly lower than those reported for the corresponding period ended 31 December 2013.”

According to Motswedi Securities, the two largest counters FNBB and Letshego gave up 1.1 percent and 0.8 percent respectively. On the other hand, Stanchart softened by 0.1 percent to end the week trading at 1253thebe. The retail bank will be expected to release their FY results.

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