The Domestic Company Index (DCI) continued with its momentum of gains from April and May, adding 0.5 percent in June to end the second quarter of the year with a depreciation of 3.7 percent, compared to a depreciation of 5.1 percent in the first quarter of the year, the Botswana Stock Exchange market report indicates.
The Foreign Company Index (FCI) appreciated by 0.3 percent on a year-to-date basis in 2021 compared to a decline of 0.7 percent over the same period in 2020.
Most comparative markets have recorded positive gains in 2021, a trend the BSE is also witnessing with respect to the DCI, particularly in the second quarter. In USD terms, the year-to-date depreciation in the DCI translated to a 4.9 percent depreciation due to the 1.2 percent depreciation in the value of the Pula against the USD. On a half yearly basis, the DCI has depreciated by 3.7 percent compared to a depreciation of 4.4 percent in the same period in 2020.
“According to the comparative performance of the indices, there are indications that the market is gaining consistency in terms of positive month-on-month returns since April 2021, for the domestic sector,” BSE says, adding that listed companies are continuing to pay dividends which tend to augment the capital gains reflected in the DCI.
The Domestic Company Total Return Index (DCTRI), which accounts for dividend paid out, also followed a similar trajectory of gains that are reversing the losses and ended the second quarter up 4.0 percent, compared to a depreciation of 4.4 percent in the first quarter. On a half yearly basis, the DCTRI has registered an overall marginal loss of 0.6 percent in comparison to an increase of 1.5 percent in the corresponding 2020 period.
Notably, the BSE explains that the difference between the performance of the DCI and DCTRI is attributed to dividend payouts as the DCTRI measures the returns accruing from both the price and the dividends. “Similarly, there are indications of momentum in trading activity as noted from the relative increase in turnover in the second quarter of 2021 compared to the first quarter of 2021,” BSE says.
Local companies contributed 62.4 percent to total equity turnover or P182.8 million in monetary terms while local individuals contributed 7.4 percent or P21.7 million in monetary terms during the period under review. Foreign companies contributed 24.1 percent or P70.5 million to total equity turnover while foreign individuals and brokers contributed 5.9 percent (P17.4 million) and 0.1 percent (P0.2 million) to equity turnover respectively.
The top three traded companies on a year-to-date basis were Letshego Holdings (P51.5 million), FNBB (P40.3 million) and BIHL (P34.1 million). The total turnover from these three companies accounted for 43.0 percent of total equity turnover, with the leading counter Letshego Holdings accounting for 17.6 percent of total equity turnover.
In comparison to the same period in 2020, the top three traded companies accounted for 50.9 percent of total equity turnover with the leading counter, Sechaba, accounting for 18.9 percent (P68.8 million) of total equity turnover. BSE says this indicates that in the current period, turnover was more spread out across the counters than it was in the same period in 2020.
Of the 30 companies, 12 depreciated in share price, nine appreciated in share price while nine experienced no share price change. The top gainer was Tlou with a 51.5 percent growth in share price, followed by Seed Co and Lucara with gains of 46.0 percent and 41.9 percent respectively. Turnstar experienced the biggest decline in share price of 20.0 percent followed by Sechaba and Absa with declines of 19.6 percent and 17.8 percent respectively.