It was another good month for the Botswana Stock Exchange as some listed companies continue to gain share price value, driven by increase in corporate earnings and dividends.
For the year-to-date, the Botswana Stock Exchange’ Domestic Company Index, which tracks share price performance of the 24 listed companies on the domestic counter, gained 0.71 percent, picking up from the 0.3 percent registered in September.
The resurgence in the DCI began in April after a disappointing first quarter in which the index depreciated by 5.1 percent. However, in the second quarter, the local bourse was on the mend, with the DCI up by 1.4 percent before finishing the third quarter with 4.2 percent gains.
Top gainers include Letshego, which is leading the pack with a 70.83 percent increase in share price, while SeedCo is up by 56.25 percent, the oldest bank in the country Stanchart’s share price has surged by 31.72 percent, while the biggest bank FNBB has added 13.1 percent to its share value since the year started.
On the losing side, property giant Turnstar has shed 28 percent off its share price, and on the back of it is tourism outfit Chobe, which is down by 22.06 percent. Sechaba which is trying to recoup losses from the intermittent alcohol bans has lost 19.37 percent in stock value.
The upward momentum in the BSE’s benchmark index will calm investors who been monitoring the decline in market capitalisation since 2015. The sustained upward trajectory in share price for some companies has been on the back of solid profits that are defying the economic headwinds, allowing the companies to give out bigger dividends to shareholders.
The DCI fell by 11.3 percent in 2016, before recovering slightly in 2017 with a 5.8 percent loss but and continued to stumble over the years, with losses averaging 11 percent. In 2019, the DCI narrowed losses to 4.6 percent and while 2020 begun strongly for the BSE, it ended the challenging year with the index down by 8.2 percent.