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BSEs record breaking trade

The Botswana Stock Exchange (BSE) on Wednesday announced that it has achieved a total turnover of P494.3 million in a single day’s trading, making history since the inception of the BSE. The record breaking trade was courtesy of New African Properties (NAP), which accounted for 93 percent of all shares traded on that day. NAP traded 26 percent of its total issued shares, delivering a P457.3 million turnover on its own.

“We are proud to announce that the total turnover achieved from today’s trading is P494.3 million. This is the largest turnover level in the history of the BSE. This is of great significance in that it shows the capacity and ability of our brokers and the BSE trading platform,” said the BSE in its social media platforms.

For its part, the New African Properties said that the change in ownership of its 26 percent shares will unlock ownership of Riverwalk and other properties to broader investor base. Furthermore it has been announced that NAP free float will be increased in line with BSE’s vision of increased liquidity in the stock market. The company, through its public relations company, Integrate PR, says the record breaking trade reflected investor confidence in home grown companies, echoing similar sentiments as those of the BSE.

“This change will broaden NAP’s investor pool. This means that the move will facilitate ownership of underlying premier properties such as Riverwalk to a wider investor base,” says Tobias Mynhardt, NAP’s Managing Director, before adding that a wider share base is positive for investors in the company, as well as the country’s financial markets.

NAP was listed on the BSE in 2011, with a total of 604 397 124 issued units. According to NAP’s 2015 annual report, the majority of the units are owned by body corporate/trusts at 80 percent, followed by insurance companies, pension/equity funds at 13.6 percent while individuals hold 6.4 percent of issued units. Of all issued units, the public accounts for 20.1 percent and the rest lies solidly with directors’ interests. The largest unit holder is Cash Bazaar Holdings (Pty) Ltd with 79.3 percent stake. In 2015, the company’s traded units were at 1.98 percent of the total issued units, making the Wednesday trade the biggest of the company since its existence.

NAP owns properties such as Riverwalk Mall, Riverwalk Plaza and Kagiso Mall in Gaborone, Mafenyatlala Mall in Molepolole, Kasane Mall in Kasane and Mokoro Centre in Maun. The portfolio comprises primarily of prime retail sites with  a strong tenant base, including Pick ‘n Pay, Spar, Choppies, Mr Price, Woolworths, Pep, Cashbuild, Furnmat, CB Stores, Ackermans, Cape Union Mart, Exclusive Books, FNB, Hi-Fi Corporation, Home Corp, Incredible Connection, Jet, KFC, Nando's, New Capitol Cinema, Mugg & Bean, JB Sports, Truworths and many others.

“The regular distributions are an attractive alternative to fixed income investments, generating higher yields. In addition these income streams, underpinned by 450 leases in 64 separate properties, increase over time which also generates capital growth,” said Mynhardt in a press release.

The move was welcome by investors as they priced in this new development, resulting in a 3.5 percent appreciation in share price to trade at P2.93. The property company has the second best performing stock in the domestic counter, with year to date returns in excess of 10 percent. For this year, the stock returned 8.5 percent, easily beating the domestic company index (DCI) which tracks the performances of listed domestic companies. The DCI has been on a back foot since the beginning of the year, registering a 4.1 percent decline on its year opening.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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