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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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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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