The Botswana Stock Exchange (BSE) has announced a substantial improvement in market performance for the period from January 1 to May 31, 2024. The BSE’s latest market performance report highlights impressive growth in equity turnover, market capitalisation, and bond trading, underscoring the exchange’s commitment to fostering a conducive trading environment.
The report emphasised a substantial increase in total equity turnover, reaching P556.8 million, marking a 65.9 percent rise compared to the same period in 2023. Additionally, the Average Daily Turnover surged by 63.6 percent, reaching P5.4 million from P3.3 million in the previous year.
Total market capitalisation experienced a remarkable 79.9 percent increase compared to the corresponding period in 2023, primarily driven by an 87.9 percent rise in the market capitalisation of foreign companies. Foreign companies now represent 92.9 percent of the total equity market capitalisation.
The top three traded companies—Sechaba (P144.5 million), CA Sales (P78.6 million), and FNBB (P50.2 million)—accounted for 69.4 percent of total equity turnover. Sechaba led the pack, representing 36.7 percent of total equity turnover
“In comparison to the same period in 2023, the top three traded companies accounted for 51.6 percent of total equity turnover with the leading counter Letlole La Rona accounting for 32.7 percent (P109.8 Million) of total equity turnover,” the report noted.
BSE says it has made significant strides in enhancing the trading environment for dual listed stocks, with a particular focus on large cap stocks such as Anglo and Investec. It aims to build a robust local shareholder base and ensure active participation by Batswana in major companies like Anglo, which has substantial investments in Botswana’s diamond sector.
According to the bourse, the period under review has seen a notable improvement in the trading of these dually listed large cap stocks.
“Anglo is currently the best performing stock on the Exchange, having gained 17.9 percent, followed by Investec with a 12.4 percent growth,” the market report noted.
Local institutional investors have been the primary drivers of trading activity, contributing a staggering 94.0 percent to equity turnover.
More than half of the listed companies on the BSE experienced share price appreciation during the review period, thus supporting the growth in both the Domestic Company Index (DCI) and the Foreign Exchange Index (FCI).
The DCI appreciated by 2.5 percent while the Domestic Company Total Return Index (DCTRI) saw a 7.8 percent increase. The FCI registered a remarkable 19.2 percent rise, a significant jump from the 0.1 percent increase observed in the same period in 2023.
Bond trading also experienced a significant boost, nearly tripling during the review period. This growth was propelled by a 171.5 percent increase in Government bond trading, which constitutes 83.1 percent of the bond market capitalisation. Corporate bond trades more than doubled compared to the same period in 2023.
At the end of May, the number of listed debt instruments totaled 129, a 174.5 percent increase. These comprised seven Government Bonds, 91 Corporate Bonds, 30 Commercial Papers, and one Sustainable Bond.
