/ 17 May 1999

FNB BOTSWANA DOWNGRADE

STOCKBROKERS Botswana has downgraded First National Bank Botswana (FNBB) from a buy recommendation to a hold, based on uncertainties surrounding the bank’s lending to the troubled Hyundai motor assembly operations. “We believe provisions that the bank will make in its next accounts due to lendings to Hyundai Motor Distributors will be such that there will no year on year growth in profits,” the broker said on Monday. The firm believes absolute profits will remain steady, however, and is not recommending selling the share. FNBB shares closed on Friday unchanged at 19,00 pula. At a briefing on Monday, FNBB denied reports that its Botswana exposure to the troubled carmaker was more than that of the Botswana Development Corporation (BDC), initially reported as 100-million pula or R133-million.