By Kabelo Seitshiro & Patience Radisoeng
Despite trading on hostile economic conditions, Sechaba Brewery Holdings Limited has managed to emerge a top performer at the Botswana Stock Exchange Limited (BSEL) with the highest daily trade per counter of P425.6 million on 15 November 2018.
The BSEL announced top five traded counters in 2018 with Sechaba Brewery Holdings Limited leading the pack at P481.6 million followed by Letshego Holdings Limited at P425.9 million.
Third place was New African Properties traded P298.4 million while the newly listed CA Sales Holdings Limited entered the club of new top performers at fourth position having traded at P195.3 million during the past year.
First National Bank Botswana (FNBB) beat other commercial banks to the fifth position having traded at P80.9 million in 2018.
BSEL Chief Executive Officer (CEO) Thapelo Tsheole said three new companies which listed last year are Seed Co International Limited, BancABC, BBS Limited.
He added that Seed Co international Limited listed by introduction hence no capital was raised and added that BancABC Botswana was listed by private placement and managed to raise P296.8 million. He spoke of the two equity delistings which are African Energy Resources Limited and Blue.
“Suspension of Choppies Enterprise Limited for non-compliance with the BSE listings requirements remains suspended,” said Tsheole.
The BSEL CEO said on Friday that the new listings requirements have taken effect from the 1st January 2019 adding that all companies that issue securities will need to comply with these rules.
He said listed companies will be given until the end of 2019 to comply and that SMEs can now list on the Tshipidi Board.
“The rules are in effect. The BSE is currently formalizing companies that have been market making by making them sign agreements. The BSE invites companies that are interested to become market makers,” said Tsheole.
He revealed that the total securities turnover of P4.4 billion was reached n 2018, compared to P3.2 billion in 2017. He further stated that the demutualization of the Exchange and registration as BSE Limited in 2 August 2018 was successful adding that 81.3 percent is owned by Government of Botswana and 18.7 percent owned by the four Stock Brokers ; African Alliance Botswana Securities, Imara Capital Securities, Motswedi Securities, Stockbrokers Botswana.
Tsheole believes that the BSE utilizes the Alternative Trading System (ATS) for trading and that the system has the capability to handle large trades such as P494.3 million 2016, P484.6 million in 2017 and P458.6 million in 2018.
He added that the system supports their strategy to grow the market and increase the average daily turnover levels to P18.0 million per day by 2021.
“We will be introducing Securities Borrowing and Lending to stimulate liquidity. The rules have been drafted and will go through the channels of approval,” he said.
Regarding the Global Depository Receipts (GDR) rules, he stated that the rules are still with the regulator NBFIRA, and await approval, and added that following approval, the BSE will be open to the issuance of GDRs.
A look into bond market performance, there were 10 bond listings and four bonds matured, which three are government bonds and seven corporate bonds. Tsheole stated that government bonds raised P2,513.0 million from new issuances and re-openings while Corporate bonds raised P687.53 million.