Thursday, February 9, 2023

ADBF ETF records P1 million turnover in first month of trade

During its first month of listing at the local bourse, the ADBF ETF recorded turnover that amounted to P1.0 million generated from 8,575 units, data shared by Botswana Stock Exchange (BSE) has shown.

Commenting on this milestone, the BSE CEO, Thapelo Tsheole, “expressed gratitude to the MCB and AfDB teams for choosing to list this product on the BSE. This goes to show that our strategic objective of growing the number of instruments and the diversity of our issuer base is bearing fruit. We recognize the hard work and dedication by the various teams involved in this listing across Africa as we welcome this product on the BSE”.

The ADBF was first conceived as part of the African Financial Markets Initiative (AFMI), dating back to 2008. Its objectives are to contribute to the development of local debt markets in Africa, by strengthening the domestic bond market infrastructure and investing in local currency-denominated debts. The AFMI’s activities are implemented through its two pillars which are the African Financial Markets Database (AFMD) and the African Domestic Bond Fund (ADBF).

According to the BSE, MCB Investment Management Co. Ltd, working in partnership with the African Development Bank (AfDB) launched the African Domestic Bond Fund, domiciled in Mauritius, that provides access to local currency African fixed income markets in a cost efficient, liquid and transparent manner. The AfDB acts as an anchor investor and sponsor, with a view to promote local currency finance and contribute to the development of local currency capital markets across the African continent. Meanwhile the BSE says total ETF turnover during the 1 January to 30 September 2022 period amounted to P105.6 Million in comparison to P71.0 Million registered during the corresponding period in 2021.

This was recorded from 702,143 units traded thus far in 2022 in comparison to 408,827 units during the same period in 2021. The ADBF ETF, NewGold ETF, BASBI ETF, NewPall ETF and NewFunds ILBI ETF prices gained 0.6 percent, 3.5 percent, 5.0 percent, 6.5 percent and 7.7 percent respectively while NewPlat ETF and BAMIB50 ETF declined 5.4 percent and 26.1 percent.

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