Wednesday, June 7, 2023

Imara biggest gainer as DCI cools down

Imara Holdings Limited, the pan African investment banking house, led the gainers on the bourse in a week when the Domestic Company Index (DCI) was cooling from recent weekly gains. Motswedi Securities said on its weekly market wrap that the DCI took a deep breath following its recent upward momentum as it gave up 7 basis points to end the week at 9593.81 points.

The Botswana Stock Exchange (BSE) listed Imara was the largest gainer as it surged by 17 percent to trade at a new 52 week high of 246thebe. “The financial service provider is expected to host its EGM regarding the disposition of its SA stockbrocking company,” said Motswedi.

Recently, the company said Imara S.P. Reid (ISPR), its South African stockbroking unit, will be sold to MMI Strategic Investments Proprietary Limited for a consideration of P100 million.

The disposal of the unit is blamed on increase in on-line share trading, escalating regulatory and compliance costs, together with generally changing market dynamics that has led to growing pressure and competition for independent stockbroking companies in South Africa.

Motswedi said G4S snapped 2 percent as investors were cheered by its recent trading update. “According to the statement, the results for the year ended 31 December 2014 are expected to be significantly higher than those for the year ended 31 December 2013.”

On the other hand, Sefalana Holdings Limited was cruising on the upside as it reached a new 12 month high of 1010thebe as investors were taking in their HY results, where revenues soared by 32 percent y/y.

“The retail consortium announced that the company continues its negotiations with third parties which, if successfully concluded might results in two transactions that could have an impact on its share price,” said Motswedi Securities.

Other gainers were FNBB and BIHL among others. BIHL released its full year results for the period December, 31, 2014. On the downside, Letshego plunged by 2.8 percent to trade at 240thebe, following its year end results. Choppies and Stanchart who are expected to release their FY results lost 0.3 percent and 0.2 percent respectively.

Letshego said it was on the hunt for a whistle blower who it said tarnished the name of the company with recent revelation of company secrets. “What will happen to their pensions if Letshego’s share price goes down because of these allegations?” Letshego’s MD Chris Low asked if Botswana Public Officers Pension Fund (BPOPF) loses trust in management as the largest shareholder in the consumer lender.

“That is why we insist that this irresponsible criminal act must be dealt with. We have to take serious action against whoever is peddling these baseless allegations”.


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