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The local bourse, the Botswana Stock Exchange (BSE) continued its rally despite the increased economic troubles hitting Europe in recent weeks. Though the European and American markets had unstable trends and the Johannesburg Stock Exchange (JSE) only being reignited momentarily last week, the BSE saw significant buying and selling of shares.
Volumes increased with 3.7million shares worth P9.8m exchanging hands during the week, an improvement from 3.5million shares worth P6.4m that were traded the previous week. Market analyst, Garry Juma says this is just another show of the slow reaction to world events that the market has. He is of the view that should there be any change, they will be hit only much later. “However the situation is fluid so we’ll wait and see.” On the investment side pertaining to the possible downturn, Bifm Chief Investment Officer, Stephen Mills noted that the issues in Europe are worrying for the world. “No, this is not merely a bump in the road. This is more serious,” said Millis.Mills further noted that however, “we believe, at this stage that a global recession should be averted but that the most likely outcome is for modest growth (below trend growth in the developed world) with the majority of the economic growth emanating from the developing world.
We need to keep an eye on commodity prices, particularly oil. The higher this key commodity remains, the more difficult decent global growth in the short term will be.” He said about the possibility of another global recession.
Meanwhile, according to the Motswedi Securities weekly assessment, the market has seen increased trading post independence holiday. “Notable volumes were in Letshego and the newly listed property stock NAP. Letshego traded 1.2million shares amidst higher bids and offer prices.” Motswedi says Letshego’s movement comes after the share prices tanked and a cautionary statement coming out which may have reassured some investors.
“Some institutional investors are placing some ‘buy’ orders as they are of the view that the stock has been over punished and is now underweight.” As such observers will watch the stock closely as Letshego will be presenting their interim results on 13 October 2011.
“The market will be hoping to get some clarity and direction on management strategy going forward given the removal of the salary deduction code with effect from 01 December 2011.” The assessment stated.
Meanwhile G4S continues its good run as the security company traded 154,543 shares on increased buying. “G4S which is generally regarded as a defensive stock is now up 25% since its 10:1 share split on the 26th of September.” The appetite for the G4S stock is still rising as investors seem not too worried about the high stock price. “The stock is now trading at a P/E ratio of 10.2x, against the market average of 9.8x and some investors are still attracted by its attractive dividend yield.” Motswedi’s assessment revealed.
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The local bourse, the Botswana Stock Exchange (BSE) continued its rally despite the increased economic troubles hitting Europe in recent weeks. Though the European and American markets had unstable trends and the Johannesburg Stock Exchange (JSE) only being reignited momentarily last week, the BSE saw significant buying and selling of shares.Volumes increased with 3.7million shares worth P9.8m exchanging hands during the week, an improvement from 3.5million shares worth P6.4m that were traded the previous week. Market analyst, Garry Juma says this is just another show of the slow reaction to world events that the market has. He is of the view that should there be any change, they will be hit only much later. “However the situation is fluid so we’ll wait and see.” On the investment side pertaining to the possible downturn, Bifm Chief Investment Officer, Stephen Mills noted that the issues in Europe are worrying for the world. “No, this is not merely a bump in the road. This is more serious,” said Millis.Mills further noted that however, “we believe, at this stage that a global recession should be averted but that the most likely outcome is for modest growth (below trend growth in the developed world) with the majority of the economic growth emanating from the developing world.
We need to keep an eye on commodity prices, particularly oil. The higher this key commodity remains, the more difficult decent global growth in the short term will be.” He said about the possibility of another global recession.
Meanwhile, according to the Motswedi Securities weekly assessment, the market has seen increased trading post independence holiday. “Notable volumes were in Letshego and the newly listed property stock NAP. Letshego traded 1.2million shares amidst higher bids and offer prices.” Motswedi says Letshego’s movement comes after the share prices tanked and a cautionary statement coming out which may have reassured some investors.
“Some institutional investors are placing some ‘buy’ orders as they are of the view that the stock has been over punished and is now underweight.” As such observers will watch the stock closely as Letshego will be presenting their interim results on 13 October 2011.
“The market will be hoping to get some clarity and direction on management strategy going forward given the removal of the salary deduction code with effect from 01 December 2011.” The assessment stated.
Meanwhile G4S continues its good run as the security company traded 154,543 shares on increased buying. “G4S which is generally regarded as a defensive stock is now up 25% since its 10:1 share split on the 26th of September.” The appetite for the G4S stock is still rising as investors seem not too worried about the high stock price. “The stock is now trading at a P/E ratio of 10.2x, against the market average of 9.8x and some investors are still attracted by its attractive dividend yield.” Motswedi’s assessment revealed.
If you want to continue reading about Botswana and other frtontier countries, please subscribe
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