Wednesday, May 12, 2021

Local equities close the week flat

The Botswana Stock Exchange’s (BSE) domestic company index closed the week flat, but there were gains in Letshego Holdings and Turnstar. Motswedi Securities said on its weekly market wrap that local equities traded 29.4mn shares worth P115.8mn (almost the same value relative to the previous week) as the first quarter of the year approaches its end.

Consumer lender, Letshego rebounded by 2.1 percent as it closed the week trading at 240thebe while on the other hand, property outfit giant Turnstar gained half a percent to make a new 12 month high of 218thebe, ahead of its year-end results. Other gainers were G4S and BIHL which both just released their FY results.

“The DCI has gained almost 2percent for the year thus far, despite the relatively higher market P/E ratio as sentiments towards the domestic counters increase and increase,” said Motswedi.

Following announcements that shareholders have agreed to disposal of SA stockbroking unit, Imara Holdings Limited saw its share price fall by 15 percent to trade at 210thebe.

The company held its Extraordinary General Meeting (EGM) recently that followed with an agreement to sell Imara S.P. Reid Proprietary Limited to MMI Strategic Investments Proprietary Limited for a consideration of P100 million according to the Botswana Stock Exchange (BSE) quoted group.

Stanchart which will be expected to release their FY results, as well, gave up 0.8% to trade at 1250thebe. Petroleum company Engen tumbled by 0.1% as investors responded to their recent trading update regarding their year-end results.

The company has since released its results for the year ended 31 December 2014, which showed revenues declined by 0.8 percent.

Engen also reported that its gross profit decreased by 26.9% from P247, 4 million to P180, 8 million mainly as a result of the decline in international crude oil prices which necessitated the revaluation of inventories during the course of the year in line with International Financial Reporting Standards.

According to the company, the overall the group’s performance reflects a 49.9 percent decrease in net profit after tax.

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