Friday, February 26, 2021

BSE makes gains in Q1, but trails peers

Although the Botswana Stock Exchange (BSE) made gains in the first quarter of the year, it trailed peers on the year to date basis.

The market performance report for up to the period ended 10 April 2015, showed the BSE’s Domestic Company Index (DCI) appreciated by 2.0 percent in Q1 and further appreciated by 0.5 percent in Q2 (period to 10 April 2015).

The update added that on a year to date basis, the DCI appreciated by 2.5 percent in comparison to a depreciation of 0.6 percent as at the same time in 2014.

On the other hand, the Foreign Company Index (FCI) depreciated by 0.4 percent on a year to date basis, solely due to a decrease of 0.4 percent in Q1 and remained unchanged in Q2. In 2014, the FCI had appreciated 0.1 percent as at April 10.

However, Deputy CEO of the BSE Thapelo Tsheole noted that The MSCI Emerging Markets Index emerged the top gainer on a year to date basis, followed by the JSE ALSI and the DCI in exception on the Mauritius bourse.

“Whilst the three indices recorded positive returns in domestic currencies, returns on the SEMDEX went the opposite direction,” Tsheole said.

“In US Dollar terms, all the indices, save for the MSCI which is dollar based, depreciated primarily due to the strengthening of the US Dollar against most emerging markets currencies over the period under review,” he added.

The Emerging Markets Index is a float-adjusted market capitalisation index that consists of indices in 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The FTSE/JSE All Share Index is a major stock market index which tracks the performance of all companies listed on the Johannesburg Stock Exchange in South Africa while SEMDEX is the Stock Exchange of Mauritius Equity Index.

However, Tsheole said notwithstanding the negative US Dollar returns, the DCI outperformed the JSE ALSI and the SEMDEX in US Dollar terms.

“It can be noted that during this period the Pula depreciated by 3.9% against the greenback whereas the Mauritian Rupee and the South African Rand weakened by 15.3% and 4.2% respectively,” he said.

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