Equity Trading: Climbing higher and higher

Barclays bank continues to “Prosper” after an 8 thebe price jump during the week left the stock trading at a flat P5.00 a share. The 1.6% price jump came after over 258 000 shares crossed the board on Thursday.

Barclays has risen in value by 11.1% in the last 10 months
Barclays has risen in value by 11.1% in the last 10 months

The best performing bank on the BSE has risen in value by 11.1%, or 50t a share in the last 10 months, and after their impressive half year results, we expect that this 52 week high price will continue on the upwards. The stock remains in high demand which will also aid in the price appreciation for the remainder of the year.

BTCL has been trading at a stable 85t per share since mid-August. However following their AGM on Monday, we have seen an improved demand and the stock gained a thebe on Wednesday to close the week at 86t a share. Our recommendation is that this is the best time to buy the stock which should recover loses if their half year results show a positive bottom line as expected. Chobe also pocketed a thebe to end the week trading at P7.57 a share, its highest price since listing.

BIHL traded an impressive 221 583 shares over the week, and managed to extend the year’s gains to 14.5% after bagging a nice 8 thebe to also close at a 12 month high of P17.40 after gaining P2.20 over the course of the year. Although the company reported a slight decrease in profitability, the market remains positive about their future growth, and past investments.

The dark cloud in Cresta’s horizon seems to be getting darker, the stock lost 2 thebe during the week to close at P1.28t a share. This followed the dismissal of the CFO on Wednesday, who had been suspended alongside the Managing Director. The MD is still under suspension, while the CFO since soon will be expected to “assist police with investigations” over undisclosed irregularities unearthed. Unconfirmed media reports say that the duo is being investigated for abuse of some undisclosed funds from the company. Investor sentiment is clearly dampened and the faster the matter is put to rest the better for the stock, which has been the best before on the local board to date.

The Domestic company index recovered some lost ground over the week as it climbed high by 0.21% to close at 9,747.71. However the index is currently lower on a ytd basis, by 8.06%, while the foreign company index has not budged from 1,596.40. (Motswedi Securities)