Lucara Diamond shares surge 4% higher

Lucara traded 176 shares on the last day of the short trading week, however the stock managed to steal the spot light, and end the day as the best weekly performer on the very first week of 2018. The stock has been trading at a significant discount on the BSE compared to on the Toronto Stock Exchange, its primary listing, allowing for some arbitrage trading did not come as a shock to us.

BTCL recouped the thebe it lost on the last few days of 2017, climbing back to its 1 year high of P1.85 per share. The stock which went Ex-Dividend on the 29th of December, will pay all shareholders on record, at the time, a dividend of 3.73 thebe in February, after closing 2017 as the best performer, up 87.8%.Last year’s third best stock, Chobe Holdings also closed the week on a high note carrying last year’s momentum into the new year. The stock bagged 3 thebe to close at an all-time high of P9.20 shares, driven by good fundamentals, acquisitions and demand.

Cresta and Sefalana saw no reprieve as they both slipped a thebe lower to close the week trading at P1.12 and P9.74, there lowest prices in over a year.

In total the market traded just over 2 million shares on its first 3 days of the year, with Letshego closing the week as the most traded counter, having traded over 1.7 million shares, unchanged at P1.88 per share. The BSE indices all started the year in the green, with the newly established Domestic Company Total Return Index(DCTRI), closing its first week 0.02% higher. We are already loving the new index, and its informative power, truly showing the wealth creation that equity markets are known for.

Foreign Exchange

Emerging markets currencies rallied over December as the dollar retreated, the Pula appreciated by 4.6% against the greenback during the month to close the year 7.9% firmer its biggest gains against any one single currency on the “Pula Basket”. Against the remaining currencies the pula firmed up against Japanese yen (4.3 percent) and Chinese renminbi (0.9%) while depreciating against the euro (4.8%), rand (1.8%) and pound sterling (1.6%)

US Non-Farm payroll figures for December come in a little lower than expected, which could see further dollar weakness into the new week. The figure penned at 148 000, lower than the market expectation of 190 000 new jobs. Unemployment levels however remain at 4.1% the lowest level since 2000..(Motswedi Securities)