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BSE 2019 Q3 report card

Publishing Date : 05 November, 2019

Author : AUBREY LUTE


Botswana Stock Exchange Limited (BSEL) this week released their 2019 Quarter 3 market performance report. Gauging and analyzing  stock market outcomes for the three quarters  ended 30 September 2019 shows that the  performance of the Domestic Company Index (DCI) improved significantly in the period 1 January to 30 September 2019 compared to the same period in 2018, with a depreciation of 5.0% compared to a depreciation of 11.5% during the same period in 2018.


The Foreign Company Index (FCI) has depreciated by 0.4% and 0.2% on a year -to-date basis in 2019 and 2018, respectively. As at 30 September 2019, the Domestic Companies Total Return (DCTRI) had depreciated by 1.0% compared to a 7.2% decline over the same period in 2018. Equity trading activity closed   the period under review at P1.2069 Billion from 387.5 Million shares traded. During the same period in 2018, the BSE had registered a turnover of P1.2313 Billion and a total volume of 470.7 Million shares traded.


According to the share price performance analysis for the period under review on listed companies, Letlole La Rona share price gained the most during the period, increasing by 21% followed by FNB and Cresta share prices which increased by 12.7% and 10% respectively. On the downside, StanChart share price decreased by 56.1% followed by Tlou Energy and Letshego which declined by 48.7% and 47.5% respectively. Of the 33 companies listed on the Exchange, 11 experienced a share price increase, 14 registered a share price decline and share prices of 8 companies ended the period flat.


During the year to September 2019, local companies contributed 52.3% to total turnover compared to 57.1% in the corresponding period in 2018. Further, local individuals contributed 4.2% of total turnover recorded during the period 1 January to 30 September 2019 compared to 4.4% in the corresponding period in 2018. A significant increase was registered with respect to foreign institutional investors whose trading activity in the period under review increased from 35.5% to 42.4%.


The value of ETF units decreased during the period under review to P180.1 Million compared to P216.2 Million in the corresponding period in 2018, and the number of units traded similarly reduced to 1.3 Million units in 2019 compared to 2.4 Million units in 2018. Notwithstanding, ETFs have performed very well in terms of the returns in 2019 relative to 2018, and well ahead of the equity market.


Gauging the BSE with other stock markets indicates that the Botswana Stock Exchange’s Domestic Companies’ Index (DCI) and the Stock Exchange of Mauritius’s SEMDEX ended the period under review down 5.0% and 4.2% respectively. During this period, the Johannesburg Stock Exchange’s All Share Index (ALSI) and the MSCI Emerging Markets Index were each up 4.0%.


On the Bond market performance fronts trading went down slightly compared to the same period in 2018. The value of bonds traded during the year-to-date period was P1, 427.7 Million compared to P1, 608.6 Million traded during the same period in 2018. Bank of Botswana (BoB) held three (3) bond auctions so far in 2019. At its first bond auction on 1 March, BoB issued additional tranches BW013 closing auction at P137 Million allotted, BW014, closing the auction at P335.0 Million allotted and a Treasury bill which closed the auction at P350 Million allotted.


At its second auction of the year conducted on 31 May, BW007  was opened and P150 Million allotted,  BW014 was also opened with P227 Million allotted, BW015 with P100 Million allotted. In addition, a Treasury bill was reopened and P300.0 Million allotted.  The third auction conducted on 30 August saw the re-opening of the BW013 with P200 Million allotted, BW014 was reopened and P232 Million was allotted, BW015 was reopened   and P250 Million allotted, and a Treasury bill with allotment of P500 Million allotted.


The BSE has listed two (2) corporate bonds so far in 2019, being the RDCP001 at P47.35 Million and CGL001 at P128.51 Million. The market capitalization of listed bonds increased to P16.5 Billion compared to P13.8 Billon as at the same period in 2018 on the back of Government bond re-openings and the new corporate issuances


At the beginning of 2019 the BSEL implemented the new Equity Listings Requirements aimed at providing a comprehensive process of how companies can list their equity securities on the Exchange. The new requirements include improved disclosure requirements across the different boards; provide rules for the listing of investment entities, and Special Acquisition Companies (SACs), among others.

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