Choppies, BTCL take heat

  • BTCL share price records 4th consecutive loss
  • Share price on the decline
  • Competition hits hard at BTCL
  • Choppies full recovery unlikely

Gazette Reporter

According to brokerage firm, Motswedi Securities, Botswana Telecommunications Corporation Limited (BTCL) share price recorded its fourth consecutive loss so far this year after dropping 1.8 percent in September 2018.
This is however, an improvement from a huge loss of 7.6 percent incurred in August 2018. From an opening price of 109 thebe on the 1st of September BTCL share price was on the losing end during the first two weeks of the month under review on increased selling from retail investors. This pulled the share price to a 21 month low of 94 thebe on the 17th of September 2018. The last time BTCL reached these low levels was in December 2016.
Garry Juma and Salome Makgatlhe at Motswedi Securities said the decline in BTCL share price however, attracted some investors back into the stock and this steadily lifted the share price thereafter to close 4.7 percent higher in the first week of October at P1.12 per share. On a quarterly basis, BTCL lost 13 percent during Q3/2018 as compared to a gain of 2.5 percent during Q2/2018.
On the other hand, troubled retailer, Choppies Enterprises Limited, commenced the new week recovery bound. The stock gained 22 thebe, to close at 62 thebe per share, which was approximately in line with its closing price on the JSE at 85 cents. Juma and Makgatlhe believe that the likelihood of the stock recovering all of the losses, of which currently stand at 74.4 percent, in the remaining three months are very slim, considering that they have already notified the public that they expected a profit after tax decline of 20 percent or more in a trading statement on the 21st of September.
“Investor confidence in the stock has waned considerably and without any further clarification on the company’s situation, a lot of uncertainty may cloud the performance of the stock,” said the Motswedi duo.
Meanwhile Chobe made a leap forward during the week, pocketing 11 thebe to close at a new year high of P10.40 per share – this movement has made the stock the biggest gainer of 2018 so far at 13.4 percent. In the pathway of good news, Wilderness Holdings released on Friday a trading statement that they expect their half year financials to be materially higher for their 2018 interim period than in the prior year. Motswedi Securities said this bodes well for the stock, as Wilderness Holdings Limited is one of the only four listed entities on the BSE’s domestic main board to be trading in the green. In the ranks of gainers were FNBB and BBS, each gaining a thebe and the latter at its highest since listing. Meanwhile on the losing front, was RDC Properties ending the trading day 1 thebe lighter at a 12 month low of P2.24 per share, and Turnstar Properties, also losing a thebe, to end at P3.04 per share – just 1 thebe shy of its 12 month low.

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