Self-correction pulls down DCI

source: Mmegi


The self-correction exercise by financial institutions at the Botswana Stock Exchange (BSE) has pulled down the DCI by 0.44 percent to 8187.38 points last week.

Standard Chartered Bank and Barclays Bank, two of the large cap counters, whose shares dominate the domestic board went down by 1.39 percent and 1.52 percent respectively last week. They further lost ground in the free fall which began at the start of the last quarter last year.Analysts say that at the beginning of the self-correction the sentiment in the market was that Stanchart along with the other banks were actually overvalued.”The fall in the share prices is actually driven more by technicalities rather than fundamentals which lead to a fair value readjustment of the share prices.

Even a rough look at the price to earning ratios will show [continue reading]

%d bloggers like this: