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BTCL records biggest monthly gain since listing

BTCL records biggest monthly gain since listing
June 13
06:49 2018



BTCL reached another record in May 2018 after it recorded the biggest gain on a monthly basis since listing. This is after the telecoms giant gained 22.5% during the month under review to close at 125 thebe amidst increased buying from both retail and institutional investors.


An analysis from local stockbrokerage firm, Motswedi Securities says the 22.5% gain in May 2018 is refreshing and it comes on the backdrop of losses between January 2018 and April 2018 when BTCL lost a cumulative 44.6% during the four month period as a result of selling pressure from mostly retail investors.


Expectations of good March 2018 FY financials


It was just a matter of time before BTCL share price picked up as the selling pressure that had been prevalent since the beginning of the year was not based on any fundamentals but was due to profit taking and to some extent retail investors offloading their shares to meet their obligations.


The buying momentum began towards end of April 2018 and became more sustained when BTCL entered into a closed period pending the release of the financial results for the year ended March 2018. The results are expected anytime from now and expectations are high that they will be positive.


BTCL had a fantastic month in terms of liquidity after trading 8.3mn shares worth P9.5mn in May 2018 from 3.2mn shares worth P3.5mn in April 2018. This is the second largest volume BTCL has traded in a month after 9.1mn shares worth P11.5mn that were traded in March 2017.


In terms of comparison with the market, BTCL contributed 1.9% towards the total market turnover in May 2018 as compared to 2.8% in April 2018. This is because the market had a once off huge deal of NAP shares worth P280mn which traded on the 30th of March 2018. Without the NAP deal BTCL contribution to the overall market liquidity would have been 4.3%.


Outlook for BTCL


BTCL expects to continue on the recovery mode as it moves towards the release of the financial results which are widely expected to be positive. The results are expected to be out by end of June 2018.

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