- As Access Bank, Letshego, FNBB lead top traded companies
Botswana Stock Exchange (BSE) recorded total turnover of approximately P4.5 billion in 2021 compared to P3.6 billion in 2020, which reflects an increase of 26.3 percent, the BSE Market Performance Report for 2021 released recently shows.
“This is on account of a 160 percent increase in equity turnover relative to 2020 primarily due to the acquisition of a majority stake of 78.15 percent in BancABC Botswana by Access Bank Plc, a Nigerian-listed bank with an international footprint,” the report reads. “The value of the acquisition amounted to approximately P1.1 billion.”
The report also shows that during the year under review, the top three traded companies on the BSE were Access (P1.1 billion), Letshego (P162.7 million) and FNBB (P95.1 million). “The total turnover from these three companies accounted for 80.9 percent of total equity turnover, with the leading counter, Access Bank, previously known as ABC, accounting for 59.1 percent of total equity turnover,” the report says.
“Access Bank’s significant contribution to total equity turnover results from a record-breaking trade worth P1.1 billion following their 78.15 percent acquisition of BancABC Botswana on 11th October 2021. The trade represented a historic moment as the BSE recorded the highest turnover ever to be recorded in a day since inception (P1.072 billion).”
Under the stewardship of Thapelo Tsheole, the BSE says during the period under review, the top gainer in terms of share price was Letshego with an appreciation of 86.7 percent in the share price, followed by Tlou Energy and Seed Co with gains of 51.5 percent and 45.9 percent respectively. Minergy, on the other hand, experienced the biggest decline in share price of 37.5 percent followed by Primetime and Chobe with declines of 23.6 percent and 22.6 percent respectively.
The BSE report shows that local companies contributed 58.7 percent to total equity turnover or P1.1 billion in monetary terms while local individuals contributed 2.5 percent or P44.5 million in monetary terms during the period under review.
“Foreign companies contributed 36.8 percent or P668 million to total equity turnover while foreign individuals and brokers contributed 2 percent (P37 million) and 0.0 percent (P0.3 million) to equity turnover respectively,” says the report. “The contribution by local companies mainly arises from the Access Bank deal where local companies were on the sell side of the trade while foreign companies were on the buy side of the trade, both to a tune of P1.1 billion, in October 2021.”
Meanwhile, the BSE says the bond market continued to be active during 2021, raising the profile of the boarse as a platform for raising long-term capital. “Trading activity during the year under review amounted to approximately P2.6 billion in comparison to P2.7 billion traded during the corresponding period in 2020,” the report says.
“This was mainly on account of trading activity in government bonds which accounted for 83 percent of total turnover. Corporate bond trading activity increased by 97 percent during the period under review to P440.5 million from P224 million during the corresponding period in 2020. As at end of December 2021, the market capitalisation of the 43 listed bonds stood at P23.1 billion.”