The Botswana Stock Exchange’s Domestic Companies Index (DCI) demonstrated remarkable resilience, with a year-to-date gain of 13.43 percent. In the week ending on October 27, 2023, the DCI experienced a marginal increase of 0.08 percent. According to the latest insights from the Stockbrokers’ weekly report, the index reached a closing level of 8,764.05 points, surpassing the previous week’s reading of 8,757.21 points.
Trading activity during the week was robust, with a significant total of 484,211 securities, valued at P1,003,165, changing hands. Meanwhile, the Foreign Companies Index (FC) maintained its steady position, closing the week at 2,463.39 points. The Domestic Companies Total Return Index (DCTRI) displayed a similar 0.08 percent gain, ending the week at 2,685.71 points.
Among the notable stock movements, BOD emerged as the week’s standout performer, closing at 15 thebe after gaining ground. On the flip side, PRIMETIME experienced a decline, becoming the sole loser of the week after closing at 174 thebe. The week’s trading activities translated into a substantial turnover of P1,003,165, with 484,211 securities changing ownership. The week’s top contributors to the turnover included SEFALANA (33%) and BTCL (17%).
The DCI has exhibited a remarkable performance in 2023 posting a robust gain of 12.1 percent in the first nine months of the year, surpassing the 4.3 percent increase registered in the latter half of the year. The DCI diligently tracks the performance of 23 listed companies primarily operating within the country.
Taking a closer look at the top gainers, Chobe Holdings, a prominent player in the tourism and leisure sector, led the pack with a staggering 86.6 percent surge in its share price, reaching a notable P14.7 per share. Chobe Holdings made a remarkable recovery after facing two years of adversity caused by the devastating impact of COVID-19 on the tourism industry. In the fiscal year ending February 2023, the company’s revenue nearly tripled to P410.9 million, and its profit soared threefold to P104 million, a remarkable turnaround from the P42.5 million loss in February 2022.
Securing the second position, Standard Chartered Bank Botswana, the nation’s oldest operating bank, registered a substantial 76 percent increase in its share price, reaching P5. The bank’s financial performance was remarkable, reporting a pre-tax profit of P241 million for the first half of 2023, marking its highest level since 2014 and nearly tripling its 2022 first-half profit of P71 million. For the full year ending December 2022, the bank’s profit before tax reached P253.1 million, a significant improvement over the P77 million pre-tax profit in 2021.
ABSA Bank Botswana, the second-largest bank in the nation, secured the third spot with a 19.6 percent gain in share price, trading at P6. The bank has consistently reported impressive profits and in the current period reported a pre-tax profit of P447.5 million, up from the previous year’s interim pre-tax profit of P394.8 million. For the full year ending December 2022, ABSA’s profit before tax reached P880 million, marking a 33 percent increase over the P659 million recorded in 2021.
In the fourth position, First National Bank Botswana (FNBB), the largest commercial bank in the country, witnessed a 16.3 percent increase in share price during the first nine months of the year, trading at P4. FNBB reported its most substantial profit to date, recording a pre-tax profit of P1.4 billion, representing an 18 percent increase over June 2022’s pre-tax profit.
Rounding up the list of top-performing stocks, Engen Botswana, the sole listed oil marketing company on the BSE, observed a 14.5 percent increase in its share price, reaching P13. Despite challenges arising from fluctuating oil prices following COVID-19 and the Ukraine-Russian war, Engen’s pre-tax profit for the first six months of 2023 dropped by 81 percent to P70 million, compared to the previous year’s P365 million. For the full year financials ending December 2022, Engen’s pre-tax profit remained almost flat at P353.4 million.
On the other hand, not all stocks witnessed upward momentum. Letlole La Rona (LLR) experienced a 26.7 percent decline in share price during the first nine months of 2023, trading at P2.55. Despite remaining profitable, LLR’s significant divestiture by one of its former main shareholders, Grit Services Limited, contributed to the share price drop.
Choppies Group, the largest retailer in Botswana, saw its share price decline by 23 percent, trading at P0.50. The group reported a pre-tax profit of P165 million, representing an 8.3 percent decline from P180 million.
The security-listed company G4S exhibited a year-to-date share price return of 7.6 percent, trading at P2.45 per share. G4S faced challenges due to the government’s decision to allocate security contracts to majority-owned citizen companies. For the first six months ending June 2023, the company reported a 61.2 percent decline in pre-tax profit to P1.2 million. G4S incurred a loss of P6 million in 2022, in contrast to the P24.5 million profit in 2021. Seedco, the only listed agriculture-focused company, witnessed a 3.7 percent decrease in share price, trading at P2.6, with drought conditions impacting its performance. The property-listed FPC saw a minimal loss of 0.42 percent, trading at P2.4.