Wednesday, January 19, 2022

BSE lauded as progressive compared to peers in SADC

The publisher of the Central African Stock Exchanges (CASE) Handbook has poured accolades on the Botswana Stock Exchange (BSE) for its innovative initiatives that have placed it a step ahead of other bourses in the region.

Jonathan Waters of New Zanj said the BSE is one of the few bourses in the region that have discarded paper and embraced the Automated Trading System (ATS) platform.

“Botswana has a progressive exchange which is always looking to launch new products,” he said.
The BSE went live in 2012 when it shifted from the manual trading system to the new electronic trading platform. At the same time the BSE also upgraded the Central Securities Depository System ICSDJ to enable the two systems, ATS and CSD, to be integrated.

This was immediately followed by dematerialization of shares by investors. These landmark initiatives by the BSE are in stark contrast to some exchanges in the region, where share prices are still written on pieces of paper as the systems are still manual.

There has also been a rise in Initial Public Offerings (IPOs) at the BSE in the recent past, notably that of Choppies, the retail giant with market capitalization of US$ 452.1 million or about P4 billion.

Botswana also performs better than other bourse in terms of new listings and de-listings. Last year, there were 12 de-listings in Zimbabwe compared to only one in Botswana, that of RPC Data.

“Both the domestic and foreign boards incurred a net loss of one counter, with RPC Data delisting while the loss of Aviva and Galane Gold was partially offset by the listing of Shumba Coal,” Waters said in the CASE handbook. “However, Firestone Diamonds delisted in 2014 and Sechaba warned in a cautionary that it was re-evaluating the benefits of listing.”

BSE will soon be listing a NewPlatinum ETF, sponsored by Absa Capital. Deputy Chief Executive Officer, Thapelo Tsheole said Absa Capital of South Africa is in the process of listing the NewPlat ETF on the BSE.

“The NewPlat ETF is expected to be listed in the third quarter of 2014,” he said.

The NewPlat has outperformed the gold-backed ETF NewGold, listed by Absa Capital on the JSE about 10 years ago, despite the 11-week wage strike in the platinum belt.

The BSE already has NewGold ETF which traded 16,937 units with a value of P1, 905,843 at prices ranging between P103.70 and P116.80 per unit in the second quarter of 2014.

As at 17 June 2014, the price of the NewGold ETF had appreciated by 2.0 percent in Pula terms when compared to the appreciation in price of Gold Bullion, which appreciated by 3.6 percent in the same period.

According to NewGold’s issuers annual financial statement for the year end 31, March 2014, dividends totaling R65,235,000 an increase from R46,000,000) were declared and paid to the shareholders during the year.

On the other hand, the BettaBeta ETF traded 13,303 units at prices ranging between P35.45 and P42.50 per unit for a total value of P520, 835 during the period under review. The price of the BettaBeta ETF on the BSE had appreciated by 9.4 percent as at 17 June 2014.

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