[2008-08-14]  Turbulent Times for Resources Sector On BSE
Resource stocks on the Botswana Stock Exchange (BSE) continued with their turbulence over the past week, worsening their prices further from their previous week's closings.

As a result, the FCI lost 0.24 percent to 2,577.50 on the back of losses experienced by some resource stocks as the total value traded for last week was P20,2 million on 2,5 million shares.


Discovery Metals was the highest loser of the week, retreating 12.86 percent overall as the counter opened at 269thebe from last week's 280thebe and slipped gradually to close at 244thebe.Aviva and African Copper shed 11.49 percent and 7.10 percent to end the week at 416thebe and 327thebe. The other losers were A-Cap (3.41 percent), African Diamonds (3.23 percent) and DiamonEx (2.40 percent) which closed the week at 264thebe, 749thebe and 122thebe respectively.

"CIC Energy announced positive results of feasibility studies and a technology agreement with Shell on the company's planned Coal-to-Hydrocarbons Project. The CTH Project will involve conversion of coal at the Mmamabula Coal Field into fuels and petrochemicals by first gasifying the coal.

"The study conducted by Jacobs Engineering Inc. concluded that the coal from the Mmamabula Coal Field was entirely suitable for the production of synthesic gas (syngas) using preferably the Shell gasification technology that was evaluated.

"CIC Energy has signed an Option Agreement with Shell for the option to acquire a licence from Shell for their coal gasification process (SCGP) technology for the CTH Project," said a Capital Securities report. "On the BSE, CIC Energy rebounded by a marginal 0.35 percent from its opening of 4013thebe to end the week at 4027 thebe."

The esteemed momentum experienced over the previous week on the domestic board, which was being driven by financial counters, slowed down this week with just one counter up and no reversals recorded on any domestic stock.

Alongside PrimeTime and CIC, ABCH was the only other gainer for the week, edging up 4.88 percent to close the week at 430thebe and traded a total of 594 302 shares as the DCI added a marginal 0.19 percent to firm at 7426.31 points.

The rest of the domestic stocks remained unchanged at their last week's prices. A total of 843, 259 shares were posted by the financial sector while the rest of the domestic stocks posted a total of 1, 233, 974 shares, the highest being Imara with 981,749 shares.

Meanwhile, the Board of Botswana Insurance Holdings Limited (BIHL) says it has reviewed the group's results for the six months to 30 June 2008.

Operating surplus and core earnings from the main activities of the group, life insurance and asset management remain sound and are in line with the Board's expectations.

"However, due to the global downturn in equity markets, the Group has experienced unrealised investment losses and, as a result, the surplus after tax for the period to 30 June 2008 is expected to be less than that of the comparable period to 30 June 2008," said a company statement.


Source: Allafrica