Wednesday, May 25, 2022

BSE DCI up 3 percent year on year

The Botswana Stock Exchange (BSE)’s Domestic Companies Index (DCI) ticked up by 0.32% to close the past week at 7224.94 points.

Its counterpart –the Foreign Companies Index (FCI) remained flat closing at 1548.93. During that week, lender Letshego was the biggest gainer closing the week at 180 thebe after a Five Thebe upward move while aspiring banker BBS Limited lost Five thebe to gain the title of biggest loser for week closing at 50 thebe.

Last week Wednesday, the stock exchange reported that it clocked P186.7 million during the day’s trade following ADP I Holding 2’s selloff in the country’s biggest microlender Letshego, with ADP I Holding 2 reducing its shareholding from 8.42 to 3.75 percent in a transaction worth P180 million.

The sale of shares by ADP I Holdings 2 was in line with their investment mandate having passed its fund duration, said Enos Banda, the board chairman at Letshego.

This single turnover in trading joins a series of significant trade milestones by the BSE in recent years including P494.3 million that was recorded in 2016, P484.6 million in 2017, P458.6 million in 2018, P149.8 million in 2019 and P1.1 billion in 2021 which stands as the highest turnover ever recorded in a single day of trading since the inception of the BSE.

“As a market, it is important that we demonstrate our technological innovation and capabilities through handling trades of this magnitude to the global business community,” said Thapelo Tsheole, the BSE’s chief executive officer.

“Such achievements serve to position the BSE on the global investment map of prospective issuers and investors looking to tap into developing markets with advanced infrastructure. As such, I would like to thank my team for their efforts in ensuring the seamless transactions of today’s high turnover.”

The latest development comes as trading activity at the BSE more than doubled compared to the same period last year. In the first two months of the year, trade increased by 130.3 percent from the corresponding period in 2021. As at the end of February 2022, a total equity turnover of P156.9 million was recorded from traded volumes of 44.2 million shares. During the corresponding period in 2021, a total equity turnover of P68 million and a total volume of 55.5 million shares traded were recorded.

The top three traded companies during the period under review were Chobe (P48.2 million), Sefalana (P44.5 million) and Letshego (P33.6 million).

Local companies have contributed 70.9 percent to total equity turnover or P111.3 million while local individuals contributed 7.3 percent during this period or P11.5 million to total equity turnover.

Foreign companies contributed 20 percent while foreign individuals contributed 1.7 percent to total equity turnover respectively.

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