Large counters lift bourse index

Brian Benza
Staff Writer | Tuesday July 8, 2008 00:00

The third quarter of the year started last week with big caps Standard Chartered Bank, Barclays and Sechaba powering ahead to lift the benchmark Domestic Companies Index (DCI) 0.21 percent to end the week at 7 190.56 points.

A report by Gary Juma of Motswedi Securities says the DCI recorded gains on all four trading days during the week under review as investors capitalised on the recent dip in prices.

'During the week, gains were recorded in five counters, while six counters recorded losses and 20 counters were static.

'Volumes were low with a total of 2.3 million shares, valued at P11.3 million being traded on the local bourse during the week as compared to 3.1 million shares, valued at P12.7 million that were traded the previous week,' said the report.

Probably buoyed by the recent drilling results at its Mokobaesi deposit, the biggest gainer of the week was A-Cap Resources. It went up by 12.5 percent to 450 thebe, followed by Stanchart, which put on two percent to 1,540 thebe. 'Stanchart has been on an upward trend since the release of good first quarter earnings results for 2008, where interest income rose by 12.8 percent to P303 million against the comparable,' said the report.

Other notable gainers in the week were Barclays (1.8 percent to 560 thebe), Sechaba (1.1 percent to 1,880 thebe) and Diamonex (0.6 percent higher at 159 thebe). Although buyers dominated the week, there were some counters that weakened with the biggest loser being the owners of the troubled Mmamabula energy project, CIC Energy. The company shed 22.3 percent to 6,400 thebe, as risk adverse investors offloaded their positions on news that Mmamabula Power project is unlikely to proceed as initially envisaged due to escalating costs. 'Turnstar also lost 13.3 percent to 130 thebe, after the release of a cautionary statement a fortnight ago advising unit holders to exercise caution when dealing in the company's shares as the company has entered into negotiations, which if successfully concluded, will result in the company acquiring properties, which may have an effect on the price of its shares,' said Juma.

Discovery Metals shed 9.1 percent to 300 thebe while other losses were recorded in Aviva, down 8.6 percent to 532 thebe. African Copper dropped 5.7 percent to 500 thebe and Furnmart retreated by 0.7 percent to finish the week at 1,420 thebe. Looking ahead, analysts believe that the bearish spell that hit the market since late last year has pulled down the prices to the lowest levels and they can only strengthen from now on.