26 Jan 2016

Motswedi Securities, a member of the Botswana Stock Exchange, has issued weekly financial markets highlights of 22 January 2016, which reflects that investors continue to take some of their profits off the table.

The highlights indicate that during the week, 4.2 million shares worth 32.1 million exchanged hands with property outfit Letlole trading a bulk of the volumes. The ETFs is said to have been relatively gloomy, with Bettabeta being the only one traded, on paltry volumes, as it edged up by 0.9 per cent to end the week at 3127 thebe a unit.

The highlights also pointed out that the property appetite seem to be increasing further as Letlole and Prime Time led the upside pocketing 0.9 per cent and 1 per centrespectfully.

Hotel operator Cresta was also another gainer as it advanced by 0.9 while on the financial sector, BIHL rose by 0.4 per cent making a new month of 1547 thebe.

The property appetite seem to be increasing further as Letlole and Prime Time led the upside pocketing 0.9per cent while on the financial sector BIHL is making a new 12 month high of 157thebe.

The highlight climaxes that the Pula closed the week firmer to the Rand and the Pound but softened relative to the Rand and shows that during the week, the Pula shed 0.2 t the dollar but advanced by 0.3 and 1 to the Euro and Pond. 

“The Rand almost breached the B17/$ mark this week, on worries about the domesticinfaltion. Affords by PBOC to stabilise Yuan raised positive sentiments towards the Chinese economy, filtering through to emerging markets currencies as the Rand started the week on a positive footing, trading around R16.62/$,” it positions.

It goes further to point that South African Statistics showed a rise in SA inflation from 4.8per cent in November to 5.2 per cent in December, pushing the Rand to surrender some of its previous gains  to levels of 16.89 per cent, adding that, however, the vaguely upbeat domestic retail sales, did not give the Rand sufficient impetus as it rebounded slightly to levels of P16.79, while another report from the SA revealed that retail sales grew by 3.9per cent in November, a slight increase from 3.4 per cent in October.

The Rand continued with its weakness mainly on pessimism global growth and domestic developments following the mining and manufacturing data for November, while on the other hand, response to the dovish tone by ECB president was fairly minimal on the Rand. 

All eyes will be on the SARB next week as they face a major predicament of rising inflation and slowing down economic activity.

With regard to crude oil, the weekly financial markets highlights that the lifting of Iranian sanctions by Western powers and lower than expected economic data from China led Brent crude oil to breach 12 year low this week.

It laments that US and European leaders ended up crippling sanctions which were imposed on Iran for its nuclear program, which led to elevated jitters about a global oil glut, as prices fell around US$29 per barrel. Major commodity consumer China’s GDP for quarter four 2015 trailed expectations, enhancing the bears towards the $28.06/barrel.

“The downtrend of crude oil prices this week was mainly attributable to the lifting of Iranian sanctions given that Iran is one of the major crude producers within the OPEC cartel,” it states. Ends