- Top three traded companies were Letshego (P499.9m), Letlole (P111.3m) and FNBB (P95.3m
- Equity turnover in 2021 was significantly high
- P1.1bn acquisition BancABC by Access Bank responsible for massive turnover in 2021
GAZETTE REPORTER
Botswana Stock Exchange (BSE) recorded a total turnover of approximately P3.1 in 2022 as compared to P4.5 billion in 2021, the BSE Market Performance Report for 2022 released recently shows.
“Equity turnover in 2021 was significantly high and this was largely attributed to the historic transaction regarding the acquisition of a majority stake of 78.15 percent in BancABC Botswana by Access Bank Plc amounting to approximately P1.1 Billion,” reads the report.
Bonds declined significantly
According to the report, bonds recorded a significant decline in turnover while ETFs trading was down by 7.4 percent in 2022.
“On the primary bond market, during the BoB auctions, treasury bills consistently outperformed government bonds with P8.9 billion and P3.1 billion allotted for the respective debt instruments during the year under review,” it says.
“This reflects the credit appetite among market participants through their inclination towards shorter term debt obligations. Inflation continued to soar, reaching peak levels of 14.6 percent during August 2022, while interest rates increased during the first half of the year, keeping a steady rate towards year end.”
Top three traded companies
The report indicates that the top three traded companies during the period under review were Letshego (P499.9 million), Letlole (P111.3 million) and FNBB (P95.3 million).
“The total turnover from these three companies accounted for 60 percent of total equity turnover, with the leading counter Letshego accounting for 42.5 percent of total equity turnover,” it says.
“Letshego’s considerable contribution to total equity turnover results from two significantly high trades of P183.0 million on 23rd March 2022 and P142.7 million on 17th June 2022 account for the two highest daily trades per counter in 2022.”
In comparison to the same period in 2021, the BSE says the top three traded companies accounted for 80.9 percent of total equity turnover with the leading counter, Access, accounting for 59.1 percent (P1.1 Billion) of total equity turnover.
Share price
“Access Bank’s significant contribution was largely attributed to the historic transaction regarding their acquisition of BancABC Botswana on 11th October 2021 which amounted to P1.1 billion,” the report shows.
Regarding the share price performance of listed companies during the period under review, the BSE says of the 31 listed companies, including BBS registered on the Serala OTC Board, 9 depreciated in share price, 17 appreciated in share price while 5 experienced no share price change.
“The top gainer was StanChart with an appreciation of 46.4 percent, followed by FNBB and Letlole with gains of 40.0 percent and 36.5 percent respectively,” says the report.
“BBS experienced the biggest decline in share price of 36.7 percent followed by PrimeTime and Minergy with declines of 23.8 percent and 20 percent respectively.”
The BSE report shows that six local companies contributed 61.3 percent to total equity turnover or P721.5 million in monetary terms while local individuals contributed 4.3 percent or P50.9 million in monetary terms during the period under review.
“Foreign companies contributed 30.1 percent or P354.4 million to total equity turnover while foreign individuals and brokers contributed 4.3 percent (P50.4 million) and 0.0 percent (P0.4 million) to equity turnover respectively,” the report reads.