Once again, bond turnover was dominated by government
The largest commercial bank by market capitalisation, First National Bank Botswana (FNBB), tops the list of the most traded companies so far in 2020 on the Botswana Stock Exchange (BSEL), the market performance report for the period 1 January to May 31 shows.
FNBB traded shares valued at P48.8 million and was at the head of a total of 32 companies that were traded in the first quarter.
In the second spot was premier micro finance group, Letshego Holdings Limited, which saw its shares valued at P47.1 million exchanging hands. Brewers of St Louis Lager, Sechaba Breweries Holdings Limited, came third with shares valued at P43.5 million sold. Diversified financial powerhouse, Botswana Insurance Holdings Limited (BIHL), followed with shares worth P27.1 million trading hands. New African Properties (NAP), which owns upmarket Riverwalk Mall in Gaborone, saw shares worth P14.3 million exchanging hands.
As a result, turnover for the top three most traded companies, FNBB, Letshego and Sechaba, accounted for 56 percent of total equity turnover, compared to 64.8 percent of the same period last year.
According to the BSE market report, local companies continued to be the dominant market participants, contributing P173 million (63 percent) to equity turnover during the period under review. Foreign companies contributed P76.1 million (28 percent), local retail investors at P19 million (7 percent), foreign retail investors contributed P5.3 million (2 percent), while brokers contributed less than P500 000 (1 percent).
With that, turnover levels were the highest during the month of March 2020, reaching P117.7 million. During the period under review which runs from 1 January to May 31 2020, total equity turnover amounted to P273.9 million, resulting in an average daily turnover of P2.7 million.
Under the stewardship of Thapelo Tsheole as Chief Executive Officer, the BSE’s Domestic Company Index (DCI) decreased by 2.3 percent in the period under review, compared to the 1.6 percent depreciation of the same period last year.
The report shows that the Domestic Company Total Return Index (DCTRI) appreciated by 0.7 percent during the period under review while the Foreign Company Index (FCI) registered a depreciation of 0.7 percent so far in 2020, relative to an increase of 0.9 percent over the same period in 2019.
Meanwhile, BSEL bond turnover was P77.9 million during the month of May 2020, derived mainly from government bonds. For the year, total turnover generated in the bond market was P343.3 million. The market capitalisation of the overall bond market was P18.3 billion, attributable to increased corporate bond issuances and government bond re-openings.
As at 31 May 2020, the total number of listed bonds was 48, comprising 7 government bonds and 41 corporate bonds.