The Botswana StockExchange (BSE) has posted a record growth on equity turnover, reaching P802.8 million in 2024 in the six month to June. This is a 94.9 per cent increase from the previous corresponding period.The BSE revealed on its market performance report for the period under review that Average Daily Turnover has increased by 97.0%to P6.5 million from P3.3 million recorded in 2023. The BSE said the total market capitalisation has risen by 80.6% relative to the corresponding period in 2023, mainly on the back of an 88.4% increase in the foreign companies’ market capitalisation. It also indicated that foreign companies account for 92.9% of the total equity market capitalisation.
“During the period 1 January to 30 June 2024, the Domestic CompanyIndex (DCI) appreciated by 5.0% in comparison to an increase of 4.3% during the corresponding period in 2023 and the Domestic Company Total Return Index (DCTRI) appreciated by 10.6% in comparison to an increase of 9.4% during the corresponding period in 2023,” BSE underscored.
The Foreign Company Index (FCI) registered a notable increase of 19.5% in comparison to a marginal appreciation of 0.1% in the corresponding period in 2023. Furthermore, the BSE said the top three (3) traded companies during the period under review were Sechaba (P154.4 million), Access Bank Botswana (P125.9 million) and CA Sales (P88.0 million).
“The total turnover from these three companies accounted for 45.9% of total equity turnover, with the leading counter Sechaba accounting for 19.2% of total equity turnover. In comparison to the same period in 2023, the top three traded companies accounted for 53.6% of total equity turnover with the leading counter Letlole La Rona accounting for 38.2% (P157.1 million) of total equity turnover,” BSE buttressed. During the period under review, the BSE said there has been a notable improvement in the trading of dual-listed large-cap stocks, particularly Anglo and Investec, which are among the top five best-performing stocks on the Exchange.
The BSE said through guiding the institutional investors, it is committed to providing a conducive environment for dual-listed stocks to trade more actively in Botswana’s secondary market.
According to the BSE, this effort aims to build a local shareholder base and ensure that Batswana truly participate in entities such as Anglo, which have significant investment in Botswana’s diamond sector.
BOND MARKET
Delving into the bond market performance, the BSE report noted that bond trading has tripled in the period under review, driven by a 235.0% rise in the trading of Government bonds, which constitute 82.2% of bond market capitalisation.
Also, the corporate bond trades have more than doubled in comparison to the corresponding period in 2023.
The Sustainable bond market registered secondary market trading for the first time since the inaugural sustainable bond listed in December 2023. At the close of June, the number of listed debt instruments totalled 135 and comprised of seven (7) Government Bonds, 95 Corporate Bonds, 32 Commercial Papers and one (1) Sustainable Bond.