Weak Volumes on quiet week

Nearly 1.2 million shares valued at P3.77 million exchanged hands over the week, with market participation relatively low after the holidays. The small volumes are characteristic of retail investors rather than institutional, who could already be preparing for the festive season.

BTCL was the most traded stock
BTCL was the most traded stock

BTCL was the most traded stock, with a weekly volume of 596 679 shares switching ownership, however the stock price remains unchanged at 85 thebe, where it has been trading since mid-August.

BIHL moved up 9 thebe over the cause of the week extending gains by 0.5% to close the week trading at P17.30 and 13.8% higher year to date. The company’s half year results showed a decline in profitability resulting from a combination of factors including an 11% decline in revenue, growing expenses, a slow economic growth and low mining activity. However the company’s stock price remains resilient, with investors still considering the stock fairly cheap at a P/E ratio of 8.2 times, while a stable dividend payout ratio of over 56% shows its strong cash position.

Chobe Safaris continues to pocket gains, having picked up 4 thebe to close at P7.55 a share its highest price since listing. The stock is trading 11% higher since the start of the year, after releasing some impressive full year results in May. Barclays bank gained a thebe in over the week as demand remains relatively high on the stock. The bank outperformed its peers having released their half year results that beat all expectation, with PBT growth of 144% relative to the same time last year.

The Domestic Companies Index (DCI) ended the week 0.07% softer at 9,790.02 points as investors returned to the market after the long weekend holiday. The decline in the DCI was mainly attributed to a loss in heavy weight Choppies which was the only loser during the week, coming off 1.4% to close at a new 52 week low of 345 thebe. The decline in Choppies share price is in line with our projections after the retail giant produced a poor set of FY financial results for the year ended 30 June 2016 where PAT dropped by 47%. (Motswedi Securities)

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