[2007-11-21]  Another Decline for DCI
The main stream Domestic Company Index (DCI) continued to lose ground last week, shedding a further 0.22 percent while the Foreign Company Index (FCI) firmed by a marginal 0.005 percent.

And contrary to what has been the norm in the past few months, commercial banks were conspicuous by their absence from the list of top losers.


They were replaced by small cap foreign mining companies, which registered heavy losses.

After performing impressively in the last three weeks on the back of healthy corporate developments, the mining counters gave into profit-taking this week as some investors that had made significant gains crystallise on their profits by pulling out.

Diamonex was the biggest loser in the review period, shedding 4.35 percent ,while African Diamonds went down 3.57 percent. Discovery, although still bubbling with confidence from new copper and nickel discoveries in the north, lost 3.36 percent.

The company announced last week that it had completed a comprehensive new study on the most effective way to process ore from its nickel deposits in the North East District.

"Several alternative methods for processing the nickel mineralisation were evaluated and the most promising technique was the bio-oxidation heap leaching using (the) geoleach process," the company said.

"The heap leach approach is expected to have lower capital and operating costs, compared to conventional flotation processing."

However, despite the less than satisfactory performance by the three counters in the period under review, they failed to drag the FCI into the red due to their small cap status.

On the other hand, security firm G4S was the biggest gainer in the week, adding a significant 1.96 percent while Chobe, which recently released its interim results, added a reasonable 1.15 percent.

Chobe produced impressive results for the half -year ended August 31, 2007 with revenue increasing by 34 percent from P34.6 million to P46 million.

Operating profit also went up by 47 percent to P20.6 million, while profit after tax recorded an increase of 74 percent from P10.1 million to P17.6 million for the reported period.

In the results, Chobe also advised their shareholders that negotiations for the acquisition of Ker and Downey Botswana have been concluded.

"Shareholders will be asked to approve the transactions at an extraordinary general meeting in the near future," Chobe said.

"Caution should be exercised when dealing with the companies securities until further announcements are made," said Chobe




Source: Copyright © 2007 Mmegi/The Reporter.