Thursday, August 6, 2020

Covid-19: BSE optimistic the stock market won’t catch the virus

The beginning of 2020 was a tough battle on the Botswana Stock Exchange as it experienced a slight depreciation Domestic Company Index compared to the previous year. 

The latest stock exchange market performance report for the period 1st January to 31st March 2020  shows that the DCI recorded 0.09percent in the first quarter in comparison to a 0.43percent increase registered in the same period in 2019.

 The DCI total returns index appreciated by 0.56percent, boosted by a combination of price and dividend improvements during the quarter.

On the foreign companies front, the report shows that foreign company index registered a depreciation of 0.71percent in the first quarter of 2020 relative to a decrease of 0.26percent over the same period in 2019. 

As at the end of Q1 of 2020, the BSE had recorded a turnover of P185million, a decrease of 46.6percent on the turnover recorded in the same period in 2019 of P346.9million. The number of shares traded amounted to 81.7million compared to 156.1million shares during the same period in 2019.

Commenting on this, BSE Chief Executive Officer, Thapelo Tsheole told Sunday Standard that, the beginning of the year is always slow but we saw increase in the first week of April. 

Looking ahead and given the Covid-19 challenge at hand, he added “It is challenging environment but we are optimistic the market will not be devastated but it will solely depend on extend of lockdown.”

Looking back to the market performance report on the period under review, the contribution by local companies amounted to 63.3percent compared to 65.1percent in 2019, whilst foreign companies contributed 28.3percent in 2020 from 22.6percent of 2019. Local individual investor contribution remained the same from 2019 at 7.3percent, whilst foreign individuals contributed 0.9percent in 2020 from 0.8percent in 2019. Brokers ended the 2020 first quarter at a low of 0.1 percent from a contribution of 4.2percent in 2019.

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Sunday Standard August 2 – 8

Digital copy of Sunday Standard issue of August 2 - 8, 2020.