Connect with us
Advertisement

BTCL listing rallies the DCI

The Botswana Stock Exchange’s Domestic Company Index (DCI) seems to be on its way up following the successful listing of Botswana Telecommunications Corporation Limited. The DCI surged by 0.63% on Friday 8th to end the day at 10, 276.40 points up from the previous day’s 10, 211.18. The surge helped reverse losses that have pulled down the index to 3.8% in the first quarter of 2016.

The rally was led by the newly listed BTCL which appreciated by 30% on the first day of trading. The buoyant DCI picked on Tuesday again with the help of BTCL and Choppies, with the respective shares appreciating about 5% and 1% respectively.

It has been a rough start for global equities worldwide following a global markets rout that wiped $6 trillion worth of equities valuation early in 2016 as the world’s largest economy fumbled. The precipitous fall in the Chinese equities led to a global contagion resulting in major markets taking a hit and sparking fresh concerns that a financial crisis is looming.

The BSE’s DCI opened the year at 10,610.14 points, and from there on the DCI has been in decline for the first quarter as it ended at 10,2o2.64, representing a decline of 3.8%. Nonetheless during the first quarter, the BSE realised trades valued at P702.2 million after moving around volumes of 187.1 million shares. During the Q1 period, the top 5 trade companies in terms of value were Letshego (P339.1 Mn), Sefalana (P91.3 Mn), Choppies (P65.4 Mn), BIHL (P58.1 Mn) and FNBB (P41.7 Mn).

Ultimately these five accounted for 84.8% of total turnover during the quarter.

The top 5 gainers in the first three months of the year were led by Cresta, the leading hotel operator in the country. Its share price has appreciated by 6.6 percent. Following closely behind is the Catherine Lesetedi Letegela’s led Botswana Insurance Holdings Limited which has advanced by 5.3 percent on the backdrop of impressive earnings. The third spot has been occupied by New African Properties which outperformed all listed property companies as its share price jumped by 4.2 percent.

Other property listed companies include Primetime and RDCP which also recorded positive share price growth at 2.4% and 2% respectively. Chobe, another tourism outfit which operates luxurious lodges and camps, claimed the 4th spot as it grew its share price to 2.9%.

On the losing side, the pan-African financial services provider took a hit on its share price despite hitting the billion pula mark in revenue. Letshego has seen its share price plummet by as much as 13.4%. Choppies, the retail giant that’s on an expansion plan, was the second biggest loser as its share price tanked by 6.8 percent. The third spot is taken by FNBB, as the largest bank by value in Botswana saw its share price decline by 6.3 percent. Engen did not do well as its share price contracted by 6%, making it the 4th biggest loser. The 5th position was a tie between Sechaba and Stanchart with both companies losing out 5% of share price value.

The usually inactive Foreign Domestic Index has been on a winning streak as the index recorded positive growth of 0.4%. The index was rallied by Galane Gold which shot up by 80% as gold continues to perform well despite slump in other commodity prices. Magnum Gas and power followed with a 25% share appreciation while another trailblazer came in the form of Lucara Corp which has been riding high since laying claim to the world’s second largest diamond at its lucrative Karowe mine.

Lucara’s share price has appreciated by about 22% in the first quarter of the year. While other companies trading under the foreign counter remained largely flat, Botswana Diamond and Shumba energy slid down to shed off 15% and 8% of share price respectively.

It promises to be an interesting second quarter for the BSE, with the first visible impact already coming from BTCL which listed 1.05 billion issued securities bringing the value of the BSE to P49.6 billion. The BTCL IPO which was oversubscribed has brought in 50,000 domestic investors, adding to the already existing 22000 investors. The market sentiments points to further appreciation in BTCL shares amid sustained demand against supply, with the shares having already appreciated by 35%.

Furthermore, FAR property will also debut on the BSE in May. The company will list 80 million units, representing 21 percent of the company’s shares. Far Property Company’s shares will begin trading at P2.57.

However, the latest estimates from analysts at Trading Economics points to a challenging year for the BSE. They project the BSE’s DCI to decline to 10,000 points in 2016 Q2, followed by 9620 points in Q3 and a further decline in Q3 that will leave the index at 9390 points. “We model the past behaviour of Botswana Stock Market (BSE DCI) using vast amounts of historical data and we adjust the coefficients of the econometric model by taking into account our analysts assessments and future expectations. The forecast for – Botswana Stock Market (BSE DCI) – was last predicted on Wednesday, April 13, 2016,” read part of the note from Trading Economics.

Continue Reading

Business

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.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

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.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

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.

Continue Reading
Do NOT follow this link or you will be banned from the site!