- But ETFs decline from P98.7m in 2020 to P70.9m year to date
- But bonds traded up from P834.2m to P1.7bn
The Botswana Stock Exchange’s key revenue stream of exchange traded funds (ETFs) have realised a decline in turnover thus far in 2021, amounting to P70.9 million compared to P98.7 million generated during the same period in 2020, says the BSE in its latest report.
The report covers the period 1st January to 31st August 2021 during which ETFs traded involved 408,345 units.
New Funds and New Plat ETF prices gained 12.8 percent and 12.9 percent respectively while NewGold ETF prices have declined by a 3.6 percent so far in 2021.
But there has been a positive note in the bond market performance, says the report. The value of bonds traded during the period under review was P1.7 billion compared to P834.2 million traded during same period in 2020.
As at end of August 2021, the market capitalisation of the listed bonds on the BSE stood at P22.4 billion.
“Six local companies contributed 64.0 percent to total equity turnover or P259.3 million in monetary terms while local individuals contributed 6.9 percent or P27.9 million in monetary terms during the period under review,” says the BSE report reflecting on investor contribution to equity turnover.
“Foreign companies contributed 23.0 percent or P93.2 million to the total equity turnover while foreign individuals and brokers contributed 6.0 percent (P24.5 million) and 0.1 percent (P0.2 million) to equity turnover respectively.”
In terms of share price performance of the 30 listed companies, 14 depreciated, 10 appreciated, while 6 experienced a no share price change.
The top three traded companies during the period under review were Letshego (P73.5 million), FNBB (P57.8 million) and Sefalana (P53.7 million).
“The total turnover from these three companies accounted for 45.7 percent of total equity turnover, with the leading counter, Letshego, accounting for 18.1 percent of total equity turnover,” says the report. “In comparison to the same period in 2020, the top three traded companies accounted for 51.9 percent of total equity turnover with the leading counter, Letshego, accounting for 25.4 percent (P122.7 million) of total equity turnover.”
The BSE says in the period under review, the Domestic Company Index (DCI) depreciated by 2.0 percent in comparison to the decrease of 5.9 percent during the same period in 2020. The Domestic Company Total Return Index (DCTRI) appreciated by a 1.6 percent in comparison to the decrease of 2.4 percent in the corresponding period in 2020.
On the other hand, the Foreign Company Index (FCI) appreciated by 0.1 percent on a year to date basis in 2021 compared to a decline of 0.8 percent over the same period in 2020.