[2007-08-14]  SBB Projects Positive Outlook for Listed Companies
With the current positive economic outlook, most listed companies are expected to report good corporate earnings, reveals a recent Stockbrokers Botswana (SBB) Fund Managers Companion Report.

The Fund Managers Companion Report for the second quarter of the year ending June 30 says the outlook is positive for business activity.

We expect this to be reflected in healthy corporate profits," say the brokers, led by Chief Executive Officer Geoffrey Bakwena.

Most of the Botswana Stock Exchange (BSE) stocks are currently reporting while others are due to report their interim and final year results, but with expected steady level of inflationary pressures, the results are expected to be stellar.

Giants like Sefalana Group Holdings and Imara Holdings recently reported positive full year results.

Botswana's fundamentals are currently positive with the national inflation currently at 6.4 percent, although it is outside the Bank of Botswana's (BoB) medium term range of 3.6 percent.

However, credit growth is expected to increase as a result of the monetary policy statement of lowering interest rates by 50 basis points from the Bank Rate of 15.00 percent to 14.50 percent.

The Bank of Botswana lowered the rates in response to the slowing down of the rate of inflation.

SBB says with expected stellar corporate earnings, the majority of stocks across the main board remain attractive.

"The bull market that began in January 2005 is well into its 30th month and not showing any signs of slowing down."

SBB says the star performer for the quarter was Imara as it led all advancers with a gain of 173 percent on the back of an announcement by the company that it expected to report exceptionally better results than those indicated in the listing prospectus for the year ended 30 April 2007.

To attest to this, Imara has released a healthy set of financial results for the year ended 30 April 2007, which recorded a 415 percent increase in profits to P48. 7 million.

Other gainers were Discovery Metals and Lionore, which followed with gains of 76 percent and 52 percent respectively.

The other advancers to close the top 5 were FNBB and Standard Chartered with gains of 49 percent and 46 percent respectively.

On the other hand, Ellerines fared the worst for the quarter, dropping 14 percent in value.

MedRescue International Botswana and Iamgold followed, shedding nine percent and eight percent respectively.

Barclays and A-Cap Resources rounded off the biggest decliners with decreases of four percent and one percent respectively.


Source: Copyright © 2007 Mmegi/The Reporter.