FNBB Close The Week Trading Over 10 Million Shares
Correspondent | Wednesday July 19, 2017 14:05
The bank, which has a market capitalisation of P6.87 billion, closed the week 1.8 percent lower and 9.5 percent lower since the start of the year.
Letshego is down by 1.9 percent for the week, extending year to date losses to 8.7percent. Last year the counter dropped as low as P1.80 per share under immerse selling pressure and bounced back after the company bought over 52 million shares from the market, exercising a share buyback programme shareholders had approved. A weaker form of the same trend seems to be in play, and with the ECB expected to tighten its monetary policy, we fear that there might be a flight of capital from emerging and frontier markets in pursuit of rising yields.
Lucara wraps up the losers for the week, closing 0.6 percent lower, having dipped 6.7 percent lower on Tuesday, only to recover most losses on Thursday. The stock closed the day at P22.86 on the BSE, nearly at par with the price on the Toronto Stock Exchange, where it trades at CND 2.81 per share, (1CND=P8.11). BTCL continues to lead the bulls on the local bourse, extending year to date gains to 50%, after bagging a thebe for the week, to close 0.7 percent higher at P1.47. Chobe was the only other gainer for the week, up 0.5 percent or 4 thebe to close at P8.39 per share. The Domestic Company Index fell 0.42 percent for the week to close at 9,206.55, 2.07 percent lower since the start of the year. The Foreign company index also retreated, closing the week 0.01 percent weaker at 1,581.70.
Foreign Exchange
The pula broke through the 1.30 mark against the rand plausibly for the first time this year. This however did not last long as dovish commentary by fed chair Yellen during her congressional testimony dampened sentiment on further interest rate hikes. Yellen was quoted as saying, “We’re watching this very closely and stand ready to adjust our policy if it appears the inflation undershoot will be persistent”. There is scientism in the market on whether the economy will bounce back from the current below target inflation levels. CPI figures for the month of June were unchanged, following May 0.1 decline. Year on year inflation penned at 1.6 percent, which is still below the target minimum inflation of 2 percent. A month ago, the market were optimistic, calling this a transitionary phase and not a trend, for the next few weeks, it won’t be so clear cut. Risky assets alongside emerging market currencies rose following testimony, with the rand erasing all gains and reverting to pre SARB nationalisation talks.
Commodity Markets
The weaker dollar for at the close of the weak coupled with better than expected imports and exports out of China gave base metals and platinum some support. Precious metals were in consolidation, with gold swinging with little change, while silver sustained notable losses.An unexpected draw in US reserves helped keep oil afloat for the week, the murky liquid however still failed to break though the $50 per barrel mark, closing the week at $48.85 per barrel, up 4.6 percent for the week. (Source Motswedi Securities)