The Botswana Stock Exchange (BSE) says it has made progress in 2015 in achieving strategic objectives as detailed in its strategic plan as a result of greater efforts from its market participants and leadership.,
Information contained in the BSE 2015 annual report signed by both the immediate past BSE Chairperson Regina Sikalesele-Vaka and Chief Executive Officer (CEO) Thapelo Tsheole is that year 2015 was an excellent year for the BSE despite the challenging global environment that was characterised by high levels of volatility in equities markets, a slump in commodities markets.
The local bourse, BSE registered a record turnover of P3.0 billion in 2015, translating into P12.2 million worth of shares traded daily and that this was an improvement from a turnover of P2.2 billion and an average daily turnover of P8.8 million in 2014.
The Domestic Company Index (DCI) more than doubled its growth and ended the year with an appreciation of 11.6 percent in comparison to 5.0 percent in 2014.The growth in the exchange was broad based as Bonds also traded an unprecedented turnover of P858.0 million whereas Exchange Traded Funds (ETFs) also shot the light out, trading the highest yearly turnover of P519.6 million.
In respect of liquidity, BSE CEO stated that BSE stretched and reached greater heights adding that pleasantly this was across Equities, Bonds and ETFs. He further stated that a record turnover of P12.2 million per day in Equities was registered in 2015. Tsheole said despite these levels being the highest ever in the history of the BSE, they are positively looking forward to breaking new grounds. He is of the view that the approval of the New Equity listings requirements will help generate more liquidity in a good way through the change in the public float from 20 percent to 25 percent effective June 2017, increasing to 30 percent in December 2017 for domestic counters.
“In addition, the coming on board of BTCL in April 2016 will not only add diversity to the bourse but will also enhance heterogeneity in the investor base,” he stated.
Tsheole believes that whilst BSE progresses with demutualization, they have equally developed strategies that will escalate the performance of the exchange, create value for the stakeholders, enhance their regulatory competitiveness and make the exchange a significant global competitor.
“Our infrastructure developments include compulsory dematerialisation of listed securities commenced in 2015 and a number of accounts opened in CSD stood at 28,222 accounts in 2015. The upgrade of IT infrastructure completed in 2014 and the implementation of a data mining system completed in 2015,” he stated in the report.