- Never closed the market inspite of onslaught of COVID pandemic
- BancABC takeover by Access Bank the highest single-day trade by any counter ever
- Equity turnover of P1.8bn in 2021 compared to P698.6m in 2020
The Botswana Stock Exchange (BSE) says compared to the prior trading period of 2020, it closed the 2021 trading year in a better position in terms of market activity.
Revealing this in the recently released 2021 annual report, Chief Executive Officer (CEO) Thapelo Tsheole says the number of listed instruments increased to 80 from 79 in 2020; total turnover went up to P4.5billion from P3.6 billion in 2020; total average daily turnover across all instruments went up by 26.6 percent from P14.3million to P18.1 million. Tsheole notes that in particular, the domestic equity market experienced remarkable recovery with the average daily turnover rising almost threefold from P2.8 million a day to P7.3million a day.
He attributes this mainly to a record single day turnover of P1.1billion in acquisition of BancAbc Botswana Limited by Access Bank Limited. Crediting 2021 with many positives even amid the challenges posed by the COVID-19 pandemic, Tsheole notes that the BSE never had to close the market at any point and therefore did not experience any disruption in market operations or encounter any adverse issues of compliance on account of the pandemic.
“We managed to set new records, two of which are the highest single day turnover and the two Exchange Traded Funds (ETFs) being listed in one day, as well as a total of three (ETFs) being listed in any given year,” he points out. “These are new milestones in the history of the BSE and we intend to build on these to improve the status of the market. During the year, we formulated a new five-year strategic plan that seeks to make the BSE a world-class securities exchange, particularly in the frontier markets space.”
According to the CEO, in 2022 the BSE anticipates reaping the benefits of its investment in technology and intends to launch a new Central Securities Depository (CSD) system, a new Automated Trading System (ATS) and a stock market simulator. It is envisaged that these services will transform the trading landscape in major ways, especially in terms of investor activity and participation across various products, reach of the market and overall education levels about the stock market.
With it having completed its 2017-2021 strategy whose targets were areas such as financial performance, technology infrastructure, regulatory environment, governance, and human capital, Tsheole says the BSE has commenced its 2022-2026 strategy period. “For the next five years, we intend to focus on four main strategic intents – increase profitability, grow listed securities, increase market liquidity and create an enabling environment,” he says in the report.
“These elements include a balance of being a public good as a stock exchange whilst also pursuing commercial value creation for shareholders, an in-depth focus on digitisation and digital value services, lobbying for reforms and supportive policies, world-class corporate governance, creative platforms for engagements with investors and for streamlining access to capital, as well as a world-class regulatory environment that promotes integrity, investor protection and is equally attractive to issuers. “In implementing the new strategy, we will leverage the experiences of the past years, especially the recent two years of the pandemic, being 2020 and 2021”