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Call for more companies to list on BSE

Investment analysts have emphasisied the need for more companies to list on the stockmarkert to increase the diversity as well as increase the range for investment opportunities.

The analysts maintain that there are a number of big companies which are making considerable profits and yet they have not listed on the stock exchange.  Currently there are 21 domestic listed companies.

Listing on the stock exchange encourages participation of regional investors within the local trade and production systems which fetches in foreign currency.

Tsephang Loeto an analyst with Investec Botswana said the BSE is need of diversity highlighting that the domestic companies index is heavily dominated by the financial services sector.

“We need diversity from various sectors be it in property, manufacturing, mining, telecoms in order to attract investors,” said Loeto.

Loeto added that he is looking forward to Botswana Telecommunications Corporation Limited (BTCL) listing because  that would be the first company of its caliber to list on the bourse which further widens investment opportunities.

He highlighted that due to the size of the market it has been difficult to attract  foreign companies to list on the stock market.

“Our market is different its small and liquidity has not been very good and foreign companies are not able to get as much as they anticipated” he said.

Last year the stock market growth went down to 5% from the 20% experienced in 2013. Loeto attributed the downward trend to the poor performance of the banking sector.

“Though it’s too early to say we are hopeful this will be a good year taking into consideration the benign inflation and falling fuel prices,” he said.

Looking at the prospects for 2015 at stock market, Garry Juma an investment analyst with Motswedi Securities said its going an interesting year at the stock market as there is likely to be market correction on some counters that include trading into premium.

“There are companies with high price- to- earnings ratio like Choppies which we expect to have its PE corrected.”

On the stocks, Juma said it’s going to be a tough year for the banking sector with the moratorium in place, no interest rates and the bank rate expected to be cut again.

He underscored the need for more companies to list to improve the market’s liquidity as well as providing investors with diverse options.

“We recently lost BancABC from the stock exchange and we need a replacement and more companies to come on board,” said Juma.

Thapelo Tsheole the Deputy CEO at the Botswana Stock Exchange shared the same sentiments on the need for more companies to list. “We are looking forward for more companies to list.” He said BSE registered a turnover of P2.2 Bn 2014 in comparison to a turnover of P2.3 Bn in 2013.

Last year Jonathan Waters, a financial reporting expert, jabbed the BSE to take an aggressive lead in prompting South African companies to cross-list . “Make it a matter of obligation that South African companies operating in Botswana list a portion of their shares in the exchange,” he said.

Meanwhile the BSE transition bill also sailed through parliament, which will allow the incorporation of the Stock Exchange providing it with the flexibility to operate on a more commercial basis and enter into strategic alliances.

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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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