BSE’s trading on the uptick

Botswana Stock Exchange’s trading activities have significantly improved on a year to year basis, authorities at the bourse announced.

According to the exchange’s market performance report for January to September, trading activity during the review period in 2022 increased by 90.8 percent compared to the previous year.

“As at the end of September 2022, a total equity turnover of P882.3 million was recorded from traded volumes of 405.4 million shares, translating into an average daily turnover of P4.8 million,” said BSE Chief Executive Officer, Thapelo Tsheole.

However, the trend in liquidity and equities shows the turnover levels, number of shares traded and the daily turnover average remained lower than the 2019 records, though above the two previous years.

Tsheole further highlighted that the domestic company index ( DCI) appreciated by 5.6 percent in comparison to an increase of 0.3 percent during the same period in 2021 while the domestic company total return index ( DCTRI) appreciated by 11.6 percent in comparison to an increase of 7.9 percent in the corresponding 2021 period.

On the other hand, the foreign company index ( FCI) registered an appreciation of 0.8 percent on a year- to date basis in 2022 in comparison to an appreciation of 0.1 percent over the same period in 2021.

Meanwhile, the top three traded companies during the period under review were Letshego, FNBB and Sefalana.

Tsheole said the total turnover from these three companies accounted for 69.1 percent of total equity turnover, with the leading counter, Letshego accounting for 52.5 percent of total equity turnover.

As part of efforts to mitigate against low trading on the bourse, BSE has recently implemented three new technology systems – integrated Central Securities Depository ( CSD) and Automated Trading System ( ATS), coupled with the connectivity to the Society for Worldwide Interbank Financial Telecommunication ( SWIFT).