The tables turned for BTCL in the week as the demand surpassed supply for the first time in almost 4 months. The company gained 3 thebe, closing at P0.73/share by the week’s end.Although the stock remains with a year to date loss of 11%, demand at these levels have the potential of further shrinking this position.
Another week, another loss for the BSE indices. The Domestic Company Index (DCI) was down 0.54% owing to a multitude of losses on the local equity market. With no stock going ex-dividend in the week, the total returns index mirrored the move of the DCI, also declining 0.54%.
The entire globe has been greatly affected by the COVID -19 pandemic with the world’s economy projected to decline by -4.5% in 2020 according to the latest report from the OECD. The effects of the lockdowns which were introduced in many countries across the globe had a significant impact on economic growth. Reports of further lockdowns and restrictions in the US and some countries in Europe are expected to further impact the global economy. Reports of a breakthrough in COVID-19 vaccine is a welcome development, although it shall take some time until the global economy can recover to pre-COVID era. Against this background, the global economic outlook remains uncertain and growth prospectus will depend on several factors such as availability of the vaccines to the larger global population, the extent of any new COVID-19 outbreaks as well as the duration and effectiveness of both fiscal and monetary policy interventions by various governments across the globe.