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BSE turnover stability declines

The Botswana Stock Exchange (BSE) turnover stability has declined in 2016 in comparison with the preceding 4 years- the BSE Q3 report has revealed.

According to the report, 2016 recorded a higher coefficient of variation of turnover of 3.4 compared to the 1.5 and 2.4 recorded in 2015 and 2014, respectively.

“This deterioration in the stability of turnover is attributable to the record turnover of P494.3 Mn realised on 15 June 2016, the highest amount of turnover ever recorded on the BSE in a single day” states the report.

The stock market recorded a turnover of P2, 138.7 Mn from 653.1 Mn shares traded. During the same period in 2015, the BSE had registered a turnover of P2, 209.6 Mn and a total volume of 546.8 Mn shares traded.

BSE says during the period under review, the the top 3 companies on a year-to-date  basis in terms of value traded were Letshego (P722.1 Mn), New African Properties (P466.9 Mn) and Sefalana (P214.5 Mn). These accounted for 65.9% of total turnover generated in the first three quarters of 2016.

BSE says during the Q3 the contribution to turnover by local companies increased to 61.5% from 50.4% in Quarter 3 of 2015. Another improvement was noticed in respect of local individuals with their contribution to turnover rising to 3.3% in Quarter 3 of 2016 relative to 2.2% in the same period in 2015.

During the period 1 January to 30 September 2016, local companies contributed 55.1% of total turnover compared to 3.6% in the contributed by local individuals.

“This is evidence that there is potential to increase retail investor participation in the market,” BSE stated.

The Domestic Company Index (DCI) depreciated by 3.8%, 1.2% and 2.8% in Quarter 1, Quarter 2 and Quarter 3, respectively. Consequently, on a year to date basis, the DCI depreciated by 7.6% in contrast to the 11.8% appreciation during the same period in 2015. The Foreign Company Index (FCI) appreciated by 1.8% on a year to date basis.

“This was an improvement from the 0.9% depreciation realised during the same period in 2015,” reads the report.

During the period under review, activity on the ETFs market was relatively reduced compared to the same period in 2015. The volume of ETF units traded was 1,261,432 in 2016 while the turnover registered was P161.0 Mn. Over the same period in 2015, the number of units traded amounted to 9,124,084 yielding a turnover of P468.9 Mn.

On the bond market; activity declined compared to the same period in 2015. The value of bonds traded over the period under review was P240.8 Mn in comparison to P751.1 Mn traded over the same period in 2015.

Bank of Botswana (BoB), on behalf of Government, held three bond auctions during the period under review. In the bond auction on 4 March, additional tranches of the BW005 (P50 Mn), BW007 (P87 Mn), BW008 (P100 Mn), BW011 (P150 Mn) and BW012 (P100 Mn) bonds and a Treasury Bill of P500 Mn were offered. All of these tranches were oversubscribed and fully allotted.

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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