[2008-09-03]  FNBB is first class performer on the bourse
Driven by its impressive set of results released recently, First National Bank of Botswana (FNBB) was the star performer on the Botswana Stock Exchange last week, adding a significant 4.1 percent to further push the mainstream DCI up.

FNNB, which is one of the four financial counters that have been pushing the domestic bourse northwards in the past three months, announced its full-year results ended June 30 2008, in which it realised a 16 percent growth interest income to P1.2 billion.

Buoyed by the positive investor sentiment in the bank, the DCI closed the week at 7,736.75 points, up 1.07 percent from last week, while the FCI only managed a 0.03 percent increase to close the week at 2574.81.

Although FNBB was last week's star performer, other banks, such as Barclays, are expected to steal the limelight when they also announce their results.

Barclays' Board of Directors have already raised investors' prospects by announcing that they expect their half-year profits for the period ended June 30, 2008 to increase by about 35 percent.

The increase is a direct result of the significant investment into the bank's retail network in 2007 and gains on the realisation of the Visa Investment. The bank will release its financial results for the period ended 30 June 2008 around September 7, 2008.

This is sweet news to the bank's shareholders after last year's dismal performance in which it realised a decline in profits due to a huge impairment charge.

Pan African bank ABC Holdings is set to announce its results tomorrow (Wednesday) in Phakalane where the fruits of its recent mega deals with IFC and Citi Bank are expected to start showing.

This is also expected to boost its share price on the bourse, which has consistently been a blue-chip stock.

Other gainers include African Copper and Furnmart while Stanchart was up 1.2 percent to 1,660thebe.

Sefcash finished the week 0.3 percent higher at 1,505thebe in response to the release of strong financial results for the year ended 30 April 2008 where profit after tax jumped by 68 percent to P22.1 million.

A top line growth of 18.9 percent to P1.2 billion and an increase of 68.2 percent to P22.0 million in after-tax profit were achieved, demonstrating an improvement in margins and containment of costs.

Sefcash managed to rake in profits despite the increase in costs due to a re-branding exercise and implementation of a new comprehensive IT system that was undertaken during the period.

The company managed to declare a final dividend of 50thebe per share, which is payable on or about September 26, 2008. In the results, the company also said it is disputing a claim on a construction contract entered into in 1999.

The dispute is to be resolved by arbitration. Additionally, the Metcash group has taken legal action against the company in respect of a debt.

Micro lender Blue Financial Services was another gainer, pulling 0.2 percent to close the week at 568thebe.

The resource sector experienced most losses with CIC Energy leading the pack, down 28.41 percent to 2,537thebe. A total of 904,266 shares valued at P 4,633,501 were traded during the week.

Other losses were recorded in Diamonex, down 5 percent to 114thebe despite announcing that the commissioning of its processing plant at Lerala Diamond Mine was complete and that recovery of diamonds had commenced.

The plant is currently operating at approximately 100 tonnes per hour, with a programme to get to the full production target of 200 tonnes per hour over the coming months.

The company expects to start the first diamond sales by the end of September.
Other losses were in Imara, down 2 percent to 1,225thebe on profit taking, while Discovery Metals lost 0.9 percent to 230thebe.

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