Buoyed by Standard Chartered Bank's resurgent counter, the Domestic Companies Index (DCI) widened its recovery path last week, adding another 1.24 percent in a development that could signal the end of the bearish pattern that has characterised the market since January.
For the third week running, Stanchart has strengthened, bouncing back from the market correction-induced battering which the counter has endured since late last year.
The DCI recorded gains on four trading days, spurred by gains in Stanchart (2.5 percent), PrimeTime (3.3 percent) and Sechaba (0.8 percent) to finish the week above the 7 000 point marks.
However, due to the massive weakening, Stanchart has faced since late last year, it is still in the red by over 20 percent on a year-to-date basis.
The FCI also finished the week higher, up 0.01 percent at 2 598.15 points, while the ACI added 0.06 percent to 2 758.11 points.
For the week, A-Cap Resources was the biggest gainer up 30.6 percent to close the week at 431thebe while African Copper pushed on 4.2 percent to 542thebe. A-Cap was driven by strong fundamentals following the announcement that it had commenced reconnaissance drilling on a 200m by 100m pattern at Serule.
"There is a significant radiometric anomaly in the Serule area and areas of outcropping uranium mineralisation were discovered there during 2007," the company was quoted by Motswedi Securities as saying.
"Over the next few months, several new targets will be drilled and evaluated in the southern portion of the radiometric anomaly.
"Results from this area will be released to the market over the coming months. The directors of A-Cap have indicated that they are pleased with
In its weekly report, Motswedi Securities also did an analysis of the stock market against inflation, which revealed that the bourse is the best performing investment vehicle on the market when inflation is factored in.
"It can be noted that the stock market has outpaced inflation by over 114 percentage points since January 2005," the report said. "Using January 2005 as the base year, the DCI has firmed by 150 percent while the inflation rate (CPI) has moved by only 36.7 percent.
"Thus, since January 2005, the DCI has outperformed inflation by over four times. (It) can be noted that the stock market is the only investment vehicle that is able to outperform inflation and at the same time maximise returns."
For the week, other gains were recorded in Discovery Metals, which closed the week 1.1 percent higher at 367thebe and Sechaba, which pulled on 0.8 percent to 1 840thebe. CIC Energy was the worst performer of the week, down 19.8 percent to 8 000thebe on profit-taking.
"RPC Data shed 5.5 percent to 52thebe while Aviva lost 0.8 percent to end the week at 526thebe. Letshego also dropped 0.7 percent to 1 450thebe while Furnmat closed the week 0.3 percent weaker at 1 430thebe.
"Trading volumes were relatively low in the week, with only 586 706 shares valued at P 2 762 092 changing hands."