Letshego sinks deeper on BSE
Mbongeni Mguni | Wednesday July 29, 2020 17:10
By the close of trade earlier today, Letshego had dropped to 58 thebe on the Domestic Companies Index after falling five thebe on Tuesday. This is compared to its high this year of 92 thebe recorded on February 25.
Letshego, a homegrown microlender with branches in 11 African countries and a loan book of P9 billion, has taken its investors on a roller coaster in recent months.
The 21-year-old group’s share price fell by 56% last year, the worst performer on the BSE’s Domestic Companies Index (DCI) in 2019. However, Letshego gained 27% in the first quarter, buoyed by P1.1 billion in pretax profits and solid executive and board appointments, which eased investor concerns.
Since April 1, however, Letshego has shed 29% in value, making it the third worst performing counter on the DCI after Minergy and Standard Chartered.
Researchers at Stockbrokers Botswana recently said Letshego Holdings’ shares have the potential to reach up to P2.10, or about 262% higher than the level at which the counter closed at on Wednesday.