- Turnover declines by P913 million
- Letshego, NAP, CA Sales lead trading
- Turnover concentrated on 3 companies
Compared to the same period in 2017 (1 January to 30 September), the performance of the Domestic Company Index (DCI) on Botswana Stock Exchange Limited (BSEL) has declined in 2018 on the back of a similarly challenging environment that is characterised by sluggish corporate earnings, according to the exchange’s market performance report for the period of 1st January to 30th September.
The report shows that over this period in 2018, the DCI has depreciated by 11.5 percent in comparison to a depreciation of 5.0 percent during the same period in 2017. The Foreign Company Index (FCI) has depreciated by 0.2 percent and 0.5 percent on a year to date basis in 2018 and 2017, respectively.
Headed by Chief Executive Officer (CEO) Thapelo Tsheole, BSEL’s trading activity was noticeably reduced during the year to 30 September 2018. As at 30 September 2018, the BSE has recorded a turnover of P1,231 billion from 470.7 million shares traded. During the same period in 2017, the BSE had registered a turnover of P2,144 billion and a total volume of 655.6 million shares traded.
To substantiate this deduction, the top 3 traded companies in terms of value, on a year to date basis, were Letshego, the pan-African microfinance firm which traded to a turnover of P376.8 million. Further, property firm New African Properties (NAP) made a turnover of P293.2 million from the sale of shares, while newly listed fast moving consumer goods distributor, CA Sales, made P194.4 million from shares that exchanged hands of investors.
These three companied accounted for 70.2 percent of total turnover during the first three (3) quarters of 2018. During the same period in 2017, 3 companies accounted to 50.2 percent of turnover, an indication of turnover concentration in 2018 relative to 2017.
During the year to September 2018, local companies contributed 57.1 percent to total turnover compared to 56.9 percent in the corresponding period in 2017. Further, local individuals contributed 4.4 percent of total turnover recorded during the period 1 January to 30 September 2018 compared to 5.1 percent in the corresponding period in 2017.
The Exchange Traded Funds (ETF) Board experienced increased traded value in the first three (3) quarters of 2018 compared to the same period in 2017. ETF is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. The value of units traded increased in the year to date period, reaching P216.2 million compared to P133.2 million in the corresponding period in 2017 whereas the number of units traded amounted to 2.4 million units in 2018 compared to 3.2 million units in 2017.
Further, activity in the bond market has improved compared to the same period in 2017. The value of bonds traded during the year-to date period was P1,608 billion in comparison to P273 million traded during the same period in 2017. Bank of Botswana (BoB), on behalf of Government, held three (3) bond auctions so far in 2018.