BSE H1 Equity Turnover Down
- As Sechaba, Letshego and FNBB leads most traded companies
Trading activity and liquidity was comparatively low at Botswana Stock Exchange Limited (BSEL) during the first six months of 2020, the BSE market report shows. The performance analysis, for the period 1 January to 30 June shows that during the period under review, the BSE equity turnover declined by 58 percent as it stood at P363.8 million from traded volumes of 153.4 million shares. This was low in comparison to a turnover of P866.9 million and a total volume of 257.4 million shares traded during the same half in 2019. Previously, the BSE had said that some trading activities were affected by the COVID-19, which created uncertainties and volatility in the capital market.
According to the BSEL market report, during the first half of 2020, the top three traded companies in terms of value were Sechaba (P68.8 million), Letshego (P60.8 million) and FNBB (P55.9 million). “Turnover from these three companies (P185.5 Million) accounted for 51 percent of total equity turnover compared to 59.7 percent during the same period in 2019, indicating improved contribution to turnover by companies in 2020 relative to 2019,” the report state. Property Company, Letlole on the other hand is on top of the list of the companies that experienced share price increases during the period under review after the company’s shares increased by 3.6 percent followed by Sefalana and Cresta which increased by 1.3 percent and 0.7 percent respectively.
With that, the top three companies that experienced share price declines were Lucara, which experienced the steepest decline in price shedding 49.7 percent , followed Minergy which depreciated by 22.7 percent and StanChart which dropped by 16.8 percent during the first half of 2020. Under the stewardship of Thapelo Tsheole, BSEL indicates that during the first half of 2020, local companies contributed 65.1 percent to total turnover compared to 60.7 percent in the corresponding 2019 period. Local individuals contributed 6.4 percent of total turnover recorded during this period, a significant improvement from the 2019 contribution of 4.9 percent during the corresponding period.
Meanwhile, BSEL indicates that the bond market experienced a significant reduction in trading activity compared to the same period in 2019. “ The value of bonds traded during the year-to-date period was P395.8 Million compared to P523.8 Million traded during the same period in 2019,” BSE states.