ESE equities market cap up 3%

MBABANE – The market capitalisation for equities in Eswatini Stock Exchange (ESE) has recorded gains up to 3 per cent in the past two days.

The strong movement was credited to the hike in financial activities for companies trading locally.

Noticeable changes were observed in some of the equities which acquired new businesses thus enabling the market capitalisation to increase.

The all share index of Swazi Empowerment Limited (SEL) recorded a 2.7 per cent increase about two weeks ago.

SEL had a market capitalisation of E666 000 000 last week which has since increased to E684500.

The all share index of Inala Capital recorded a 3.7 per cent increase about a week ago.

Increased

Inala Capital had a market capitalisation of E97 191 900 last week, which has since increased to E100 791 600.

Nedbank Eswatini yielded the most gains as their market capitalisation hiked by 3.9 per cent.

Nedbank Eswatini had a market cap of E298 770 363 which adjusted to E310 721 177.

ESE’s overall market capitalisation remain stagnant at E4 327 237 158.

The Royal Eswatini Sugar Corporation Limited (RES) had the highest market capitalisation of E1 464 467 104.

At this rate, RES Corp was likely to have a larger share of dividends in the current financial period.

Dividends are now paid directly to bank accounts

ESE announced that dividends from local companies listed in their markets should be paid directly to client’s bank

Name

Swaprop

Greystone Partners

SBC Limited

Inala Capital

THE MARKET CAPITALISATION IS AS FOLLOWS:

Nedbank Eswatini

Royal Swazi Sugar (RSSC)

Swd Empowerment (SEL)

ISIN Code

SZ0005797904

SZ0005797920

SZE000331015

SZ0005797946

SZE000331023

SZE000331031

SZE000331049

accounts.

ESE said this was in line with the Central Bank of Eswatini’s media statement issued July 20 2021, announcing the elimination of cheques as a mode of payment effective from January 2022.

A majority of investors in Eswatini both as individuals and companies use the buy and hold strategy when buying stock on public listed companies under ESE.

Undervalued

Previous Bid Price

1250 1520 3700 790 315 890 135

They seek out undervalued stocks and buy them with the intent to hold on to these positions for months, if not years with the intent to benefit from the company’s dividends.

The strategy is advantageous to investors looking to benefit from dividends but further contributes to the slow movement of the local market.

This was mentioned by ESE Analysis Department in an interview with this

Current Bid Price

1300 1520 3700 790 315 890 140

Capital Gains Yield

3.9% 0.0% 2.7% 0.0% 0.0% 0.0% 3.7%

publication.

They said they had seven enlisted companies under ESE but most investors used the buy and hold strategy which was beneficiary to the dividends.

Sell

Market Capitilisation (SZL)

310,721,177 1,464,467,104 684,500,000 183,743,335 724,252,942 858,761,000 100,791,600

ESE said investors came with the mantra of ‘buy low, sell high’, and sought out undervalued stocks and bought them with the intent to hold on to these positions for months, if not years.

They said this was because investors believed the company’s management and performance superseded all the chaos and flux that was inherent in the market, and in time, the stock would reward them with a large return on their capital.

“A buy and hold strategy is a longterm, passive strategy in which investors keep a relatively stable portfolio over time, regardless of short-term fluctuations,” said ESE.