[2008-11-20]  BSE Indices
On a year to date, the DCI is down by 4.35%, while the FCI and the ACI have tumbled by 44.71% and 42.32% respectively.
Around 1 million shares, valued at P3.3 million were traded during the week as compared to a total of 6 million shares, valued at P105.8 million that were traded the previous week.
Going forward, we expect the DCI to continue trading weaker in the short term due to profit taking mostly from banking stocks. However, we urge investors not to engage in panic selling as this will result in asset value loss, instead investors should take advantage of the resultant asset price falls to take positions on the market.
On the other hand we expect the FCI to remain volatile mainly as a result of the continued volatility on global financial markets, a factor likely to result in cautious trading on most counters on the Foreign Equity Main Board.
For the week, property giant Turnstar, was the highest climber, up 2.1% to 145 thebe, as investors snapped up the counter after initially softening to 140 thebe on Wednesday. Micro Lender, Blue Financial Services edged 0.9% to 460 thebe on 2,148 shares.
On the downside, Diamonex remained on the top spot among the losers, losing 51.1% to close at another 52 week low of 22 thebe on dampened investors sentiments since the company announced that 10,613 carats of diamonds from its Lerala Diamond Mine were sold at US$20 per carat-much less than the preliminary valuations.
The company however, firmly believes that the current prices are not representative of longer term diamond price expectations. A-Cap Resources was in close pursuit, down 31% to 69 thebe on 1,700 shares.
Aviva lost 7.4% to 100 thebe, while financial giant, FNBB came off by 4.5% to 275 thebe after recording losses in each trading day during the week on persistent profit taking. FNBB rose from its 52 week low of 235 thebe on the 8th of July, then reached its 52 week high of 340 thebe on the 8th of October 2008.
We expect the counter to remain weaker in the short term mainly due to profit taking, but in the mid to long term, we expect the counter to recover. Accordingly at the current price, we believe the counter offers compelling value and we urge investors to accumulate.
Other losses were in Discovery Metals, Barclays and BIHL, down 2.8%, 2.0% and 1.3% respectively to end the week at 105 thebe, 980 thebe and 780 thebe respectively. The table below shows all the movers during the week under review.




Source: GAZETTE