Are markets rebounding?

After a subdued end of2012 results for manyof the Botswana StockExchange listed companies,there just might be resurgenceat the half year point for thebig players according to tradingupdates. Botswana’s largestinsurance and asset managementcompany, BotswanaInsurance Holdings Limited(BIHL) and one of the fastestgrowing banks in the localsphere, BancABC, both putout trading statements that anticipatedhighly positive numbersfor their half year results.“The Board of BIHL herebyis pleased to announce thatthe Group’s results for the 6months ended 30 June 2013will be signifi cantly higherthan those reported for the 6months ended 30 June 2012.This is mainly driven by thegood investment environmentduring the period.

 

The resultsfor the 6 months ended 30June 2013 will be publishedby the end of August 2013,”reads a trading statement fromBIHL.BancABC states that despitethe rise in impairments,they will perform exceptionallybetter than their end ofyear results. “The shareholdersof ABCH are advisedthat notwithstanding a hugeimpairment in respect of thecontingent liability that wasdisclosed in the 2012 annualreport, the Group expects torelease results for the periodended 30 June 2013 on orabout 13 August 2013, whichwill be signifi cantly higherthan what was reported for theperiod ended 30 June 2012.Accordingly, shareholders areadvised to exercise cautionwhen trading in the Company’ssecurities.”Both these come off thebackdrop of a more than expectedgrowth in retail shoppinggiant Sefalana HoldingCompany Limited.

 

The company put out results thatshowed massive growth with38% realised in profi ts drivenby its Save Cash and Shoppersretail store expansions whichboth contributed 86% towardsthe whole kitty in the yearunder review. Sefalana shareholdersshone with a healthy21 thebe dividend payout.This might just be the sparkthe economy has been lookingfor. While diamond pricescontinue to cast a dampenedmood on the whole economy,as mining remains the largestcontributor to the country’sGross Domestic Product, list-ed companies could be makingtheir way back.Garry Juma, head of Researchat Motswedi Securitiesbelieves that the market couldbe over the tide that came asan aftershock of the 2008/09recession and Botswana governmentspending cuts.

 

“If we are getting these positivenumbers from the big guys inthis diffi cult macroeconomicenvironment, then these mightbe signs of recovery, ” he said.Three of the biggest financialsector players, Barclays,Standard Chartered Bank andFNB are set to announce resultsin the coming month.While the fi rst two will be announcingtheir half year, thelatter will be stating their fullend of year results. Tradersexpect Standard Chartered tocome out looking good, takinginto account their renewedgrowth initiatives which includeSMME fi nancing. FNBis expected to continue itswinning streak from the halfyear 17% profi t before tax.Barclays remains a grey areafor traders, the stock itself hasnot fared well compared to itsfi nancial stock counterparts.To date it is trading at 5.6%lower, making it currentlythe biggest loser; one traderattributes this to the lack ofappointment of a ManagingDirector, which is startingto cast doubt on institutionaldirection. He said the Absa-Barclays combination deal didnot have any bearing on stockas little change is expectedto take effect post the deal.Chief Operating Offi cer, AupaMonyatsi has been acting MDfor 15 months.