Wednesday, May 22, 2024

BSE to float Exchange Traded Fund with 10 U.S companies

Botswana Stock  Exchange’s ( BSE’s ), chief executive officer, Thapelo Tsheole  said Wednesday that they are gearing up  to  float  Exchange Traded Fund (ETF) composed of the top 10  USA  companies in the near future.

This comes at time when BSE is working  on a plan  with other seven leading bourses across the continent– with a combined market capitalisation of  USD $ 2.6 trillion — to get connected.

“We hope to list one ETF this year that will have a basket of the top 10 USA companies. This will include the likes of Apple and others.

“This will give exposure to the top 10 USA companies and exposure to buy shares that are in strong currency as the US dollars,” he said. The move is also expected to prop-up the image of the BSE as it gets into a race to hit P 1 trillion in the next two- to three years. BSE is working on broker connection with other African exchanges expected to be operational by early next year.

A capital outlay of US $ 600,000 or P 8.2 million is already in place for the project that will connect Africa in terms of financial services.

“The problem is that people tend to look on the side of goods when talking about trade within Africa. Services can be very big,” he added. He said the exchanges in Africa are working around the clock to put up clearing system which is expected to be operational; early next year.

“We are talking to Pan African Settling System to sort things out. The discussions are active now and we will see in the new year on how things will go,” he said.

The leading stock markets that are trying to get connected are: (BVRM) which are the seven countries of West Africa, Botswana, Egypt, Johannesburg Stock Exchange, Mauritius, Morocco, Nairobi and Nigeria.

The   stock markets have 2000 companies with market capitalization of US $ 2 trillion.

Meanwhile, NewGold issued by Absa Bank — an ETF– released strong set of results this week showing total revenue having gone up from  R 41.5 million ( P 29.6 million) to R 71.5 million or P51.1 million like-on-like to end of March 2023.

The shows 200 percent growth rate since the ETF was listed on the BSE in 2012.


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