The Botswana Stock Exchange is closing the year on a lower note to reverse gains made over the past quarters.
The BSE market performance for the 11 months of 2011 showed that the Domestic Company Index (DCI) and Foreign Company Index (FCI) registered losses in Quarter 4.
According to the stock exchange, the DCI recorded its first quarterly loss for the year 2011 in Quarter 4 (up to 30th November 2011) following three consecutive quarters of gains.
“The DCI depreciated by 2.61 percent in Quarter 4, having appreciated by 8.2 percent, 0.5 percent and 3.6 percent in Quarters 1, 2 and 3 of 2011 respectively,” the performance report stated.
BSE said the DCI has come down by 6.1 percent from the highest point reached in 2011 of 7,412.2 points. On a year to date basis, the DCI appreciated by 8.5 percent as at 30th November 2011.
On the other hand, the DCI closed Quarter 3 with gains of 2.8 percent, but lost 6.3 percent in Quarter 4. In Quarter 2, the FCI was flat, having appreciated by 7.7 percent in Quarter 1.
“As at 30th November 2011, the FCI had appreciated by 3.6 percent on a year to date basis. In comparison to the highest point reached in 2011 (1,853.2 points), the FCI has declined by 6.4 percent as at 30th November 2011,” BSE stated in the report.
However, comparatively, the BSE is head above its peers in the region. On a year to date basis, (up to 30th November), the DCI appreciated by 8.5 percent compared to an appreciation of 2.2 percent by the JSE ALSI and the depreciation of 5.3 percent by the Stock Exchange of Mauritius (SEM).
“The BSE is trading at a PE ratio of 10.2x whilst the JSE and SEM are trading at a PE ratio of 12.9x and 11.0x, respectively,” the BSE said.
The DCI in US Dollar terms appreciated by 6.7 percent and 0.4 percent in Quarters 1 and 2, respectively.
It depreciated by 7.3 percent in Quarter 3 and declined by 7.8 percent in Quarter 4 (up to 30th November 2011).
On a year to date basis, the DCI has depreciated by 8.4 percent in US$ terms as a result of the Pula depreciating by 15.2 percent against the US$ in the period under review.
In spite of the recovery of the DCI in 2011 in comparison to other markets, the DCI still remains below the index value as at 13th September 2008.
The DCI has yet to recover 13.5 percent from the level it was at the onset of the financial crisis on 13th September 2008 while the JSE and SEM have recovered and surpassed their levels by 25.5 percent and 12.7 percent respectively.
As at 30th November 2011, the total value of shares traded on a year to date basis amounted to P818.8 million in comparison to P962.8 million in the same period in 2010.
The average equity daily turnover amounted to P3.6 million compared to the turnover of P4.2 million in the same period in 2010.
Since the beginning of 2011, a total of 9 listings took place in the BSE of which 6 were equities, 1 ETF and 2 bonds. So far in the year, there has been a single equity delisting, Iamgold, from the Foreign Main Board.
Letlole La Rona listed on the Domestic Main Board on the 15th of June 2011 through an IPO.
New African Properties (NAP) also listed on the Domestic Main Board through an IPO, on 28th September 2011.
Firestone Diamonds Plc and Botswana Diamonds Plc dual listed on the Foreign Venture Capital Board on 13th June 2011 and 27th June 2011 respectively.
Lucara Diamond Corporation dual listed on the Foreign Venture Board in Quarter 3.The sixth equity listing was by African Resources Energy on the Foreign Venture Board on 31st October 2011.
The BSE listed the second ETF, BettaBeta Equally Weighted Top 40 on 11th May 2011.
Choppies, the local chain is expected to light up the primary activity when it lists in January after it opened its public offer where its plans to raise P350 million from institutional and retail investors.