Profit-taking on BSE ahead of holidays

Staff Writer | Tuesday December 15, 2009 00:00

The November-December period is traditionally a profit-taking period on most liquid bourses around the world with investors cashing in their stocks.However, for this year's season, the cash-in began rather late as investors were still riding high on the high wave of renewed confidence creeping back into the markets with the recovery of the world and the Botswana economy.

By close of trading yesterday, the Domestic Companies Index (DCI) lost a further 0.20 compounding last week's losses.The DCI finished in the red on each trading day last week weighed by persistent losses in FNBB, BIHL and Letshego. But significant volumes were observed in some selected stocks such as Turnstar, FSG, Sechaba, Letshego and FNBB.

As a result, a total of 2.4 million shares valued at P8.8 million were traded during the week under review, an improvement from 454,715 shares worth around P2.9 million that were traded the previous week. A market report from Motswedi Securities said Olympia tumbled by 15.4 percent to 55thebe, followed by African Copper which lost 11 percent to 65 thebe and FNBB which ended the week 5.7 percent weaker at 250thebe as investors continue to take in profits. Other losses were in Discovery Metals which went down 3.4 percent to 285thebe, Letshego that has been on an upward trend for the past three weeks finally succumbed to profit-taking losing 3.1 percent to 1 550thebe. Insurance giant BIHL lost another 2.6 percent to 1,140thebe also on profit-taking, while Sechaba finished 0.2 percent softer to close at a new 52-week low of 1,298 thebe after the company released a tepid set of interim results.

On the upside, property developer RDCP was the highest climber during the week, pushing on 2.4 percent to reach a new all-time high of 420thebe on increased buying.

'Investors are currently excited about the Masa Centre which the property developer is currently developing. The Masa Centre, upon completion, will be a jewel in the group's property portfolio and the first mixed use development in Botswana.

'Engen finally bounced to winning ways, pushing on 1.4 percent to 365thebe as some investors view the current lower price as a favourable entry point for the stock. Sefcash pulled on 1.1 percent to 1,425 thebe, while IAMGOLD added 0.9 percent to 9,800 thebe, buoyed by relatively firmer gold prices on the international market,' read the report.