GABORONE - Increasing appetite for stock saw the domestic companies index (DCI) pushing 0.57 per cent higher, a weekly market report from Motswedi Securities state.

According to the weekly report, the DCI ended the week at 7 340.95 points, pushing its year to date growth to 4.34 per cent as most counters registered gains during last week.

The Foreign Companies Index (FCI) was static at 1 328.20 points due to little activity in the Foreign Equity Main Board.

There were however some higher bids, which were above the market price in some counters such as Anglo, IamGold, Investec and African Diamonds.

We note that potential sellers are reluctant to offload their holdings at the current price in anticipation of future gains in the stocks, Motswedi Securities states.

During the week, a total of 706 615 shares worth P6.1 million swapped hands on the BSE, don from 4.2 million shares, worth P51.2 million that were traded the previous week.

No counter traded on the downside as nine gained.

African Diamonds was the biggest gainer at 12.9 per cent to 350 thebe after the company announced its intention to increase its stake in AK6 to 40 per cent.

Imara closed the week 12.5 per cent higher at 675 thebe after the company released a renewal of its cautionary statement while Prime Time pushed on 4.9 per cent to 150 thebe after releasing a fair set of financial results which saw rental income growing by 33 per cent.

Funeral Services Group (FSG)s Phomolong Memorial Park continues to excite investors as the counter has since risen by 46 per cent since its initial listing in October last year.

Sefalana, Letshego, RDC Properties, Turnstar and Barclays also registered growth after releasing pleasing interim results. The development of Masa Centre in the Gaborone Central Business District (CBD) has created excitement among investors as a result RDC Properties registered nominal growth.

Meanwhile, the national inflation rate, as measured by the Consumer Price Index (CPI) fell marginally to 6.9 per cent in October from 7 per cent mainly as a result of decreases in the food and non-alcoholic beverages group.

Motswedi Securities says they expect inflation to remain in single digit levels and average around 6.8 per cent over the next 12 months as underlying inflationary pressures are low both domestically and internationally.

However, any increases in administered prices such as electricity tariffs and any sharp rise in fuel prices on the international market may dampen the downward momentum and exert more inflationary pressures into the economy, the report states.

In the currency market, the Pula lost ground against the rand, but firmed against the dollar, the euro, the pound and the yen.

Against the dollar, the pula gained 0.94 per cent, one per cent against the euro and the pound and 0.59 per cent against the yen while losing 0.71 per cent against the rand. BOPA