Monday, May 17, 2021

DCI closes at record weekly gains as BSE remains flat

Trading on the Botswana Stock Exchange (BSE) was flat on Friday with mixed performances from a number of companies, though the Domestic Company Index (DCI) closed at record weekly gains of 9520.43 points.

Sefalana Holdings Limited was one of the biggest gainers on the main board as it continued its bull run, closing at a new 12 month high of 1001thebe. The blue chip company, with a market capitalization of US$143.7 million or P1.4 billion, is one of the main gainers of the year thus far, as investors’ appetites have been whetted by its impressive HY results in which it posted a 32percent y/yr increase in revenues.

The market will be hoping for long term growth prospects for Sefalana after it recently opened 12 stores in Namibia and acquired lucrative tenders.

“Sefalana continues its strong run, up 4.71percent this week to 1001 thebe per share. The retail giant has proven a favourite amongst investors, having gained 8.45percent YTD,” said Stockbrokers Botswana in its weekly market review.

Troubled copper miner Discovery Metals also staked its claim as shares soared 83 percent to trade at 22thebe. The minerals company has gained 57 percent year to date. The share price movement could have been influenced by news that DML was in talks with a Barclays Capital backed private equity firm, Cupric Canyon Capital LP for a possible sale of its Boseto copper mine. The deal did not go through, though the company managed to secure $AU 110 million investment from Castlepines Global Equities Limited.

In the agreement, Castlepines will acquire a 34 percent stake in Discovery Copper (Botswana), while DML will retain 66 percent. The minerals company has gained 57percent on year to date. Beverages company Sechaba Brewery Limited kept its up-trend, closing at a new 52 week high of 2850thebe. First National Bank of Botswana (FNBB), which was recently named among the top 30 companies in Sub-Sahara Africa by market capitalization, pocketed 1.4 percent to trade at 370thebe. The retail bank, which registered a 40 percent cost to income ratio in its FY: 2014 results, is expected to release interim results soon. Retailer Choppies was the only counter that closed in the red as it slid by 0.7 percent to trade at 399thebe. The retail giant currently trades at a P/E of 28x.

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