BSE Indices – value of trades improves
20-06-2010

Despite the Domestic Company Index (DCI) weak performance, the value of trades improved significantly as 12,540,273 shares, worth P34,904,013 exchanged hands during the week as compared to 1,742,693 shares worth P5,616,509 that were traded the previous week. Letshego contributed around 84% of the volumes reflecting investor’s appetite for the stock. Since the 10:1 share split that was effected on the 19th of April, Letshego has risen by 25% and this has pushed its PE ratio from 7.5x to 9.6x.

*= Prices adjusted following the 10:1 share split on the 19th of April

Security company G4S Botswana was the top mover of the week up 10.3% to close at a new high of 3,000 thebe. Regional bank ABCH was next on the line jumping by 10.0% to close at 110 thebe. Discovery Metals pushed 5.2% to close at 446 thebe, whilst FSG continue to excel after adding 3.4% to close at 243 thebe. Despite trading at a higher PE ratio of 27x against a market average of 12.9x, we are still observing an increase in demand for the stock.

Other gains were in Banking giant Barclays  up 2.8% to close at 660 thebe. Investec and BIHL jumped 2.5% and 0.6% apiece to close at 5,291 thebe and 845 thebe respectively. Tourism operator Chobe ended at the bottom of the list of gainers edging 0.3% to close at 327 thebe.

On the down side, Anglo was the biggest casualty of the week dropping 7.3% to close at 2,500 thebe in line with losses on the JSE. Stanchart lost 6.9% to end the week at 1,490 thebe, while Brewery maker Sechaba pulled 4.8% to close at 995 thebe as the counter continue to drop after releasing a weaker set of financial results for the year ending 31 March 2010. Investors are also dumping the stock on uncertainty over the alcohol levy.  The government indicated that the 30% levy on alcoholic beverages might be increased if drinking habits do not change.
Other losses were in Primetime, Sefalana and FNBB.  The table below shows all the movers during the week under review.

The Gazette