SEL nets E16m dividend, market cap up 15%

MBABANE – Swaziland Empowerment Limited’s (SEL) investments have performed well yet again.

This after the company officially declared a dividend worth E16.2 million.

This can only confirm that Securities and Commodity Exchanges which SEL holds in various companies, particularly Eswatini MTN, have delivered for the umpteenth time.

The exact amount to be shared by SEL’s shareholders is E16 280 000. The all share index of SEL recorded a 2.7 per cent increase in August 2022.

SEL had a market capitalisation of E666 000 000 last week, which increased to E684 500 000, projecting an overall growth of 15.74 per cent.

“The interim dividend is declared at two hundred and seven cents per share to ordinary shareholders registered as such in the company’s share register at the close of business on or before May 20, 2022,” read a statement from SEL.

Although SEL holds a majority of its stake at Eswatini MTN, there had been overtures to pump money into Eswatini Mobile in the past.

This has not been confirmed yet.

7 LISTED COMPANIES ON ESE MAIN BOARD

Company

Nedbank Eswatini

Royal Eswatini Sugar Corporation (RES)

Swd Empowerment (SEL) SWAPROP

Greystone Partners

SBC Limited

Inala Capital

Eswatini Mobile is virtually a new player in the country’s telecommunications industry.

“Payment of the dividend is expected to be no later than March 13, 2023. Normal and withholding tax will be deducted from dividends paid to local shareholders and non-resident shareholder, respectively, where applicable,” further read the statement. SEL was established in 1998.

The Eswatini Stock Exchange (ESE) all share index increased by 1.44 per cent from 453.58 in January 2022 to 460.11 in January 2023.

Trades

According to ESE’s monthly report for January 2023, the month of January 2023 had nine trades, which three of them were at zero consideration, one special bargain, and one transfer of ownership which was considered as a zero

Market Cap % 7.37% 33.68%

Market Cap

E320 321 742 E1 464 464 064

15.74%

4.22%

16.92%

19.75%

2.32%

100.00% consideration.

ESE said the value traded increased exponentially from E0.00 in December 2022 to E215 126 in January 2023.

They said the local equity market’s capitalisation remained constant at E4 364 278 514 in December 2022 to the end of January 2023.

“Likewise, there was no change in the market capitalisation because all the trades for the period under review did not cause share prices to change. Year-on-year, the market capitalisation realised a 1.44 per cent gain from E4 302 346 581 in January 2022 to E4 364 278 514 at the end of January 2023,” mentions the report.

It was also indicated in the report that Corporate Bonds value decreased by 0.3 per cent from E1 705 304 419 in December 2022,

E684 500 000 E183 675 000 E735 749 021 E858 761 000 E100 791 600 E4 348 262 427 to E1 700 185 043.75 in January 2023 due to two bonds (corporate bond SML800 and corporate bond FIN300) that matured.

They listing company mentioned that as of January 31, 2023, total government bonds stood at E6 068 828 000. They increased by 2.41 per cent from E5 925 730 000 in December 2022, E6 068 828 000 in January 2023.

The increase in government bonds was a result of four bonds re-opening, and on a yearly basis there was a 4.38 per cent increase from E5 813 947 000 in January 2022 to E6 068 828 000 in January 2023.

Equity

Economist Thembinkosi Mavimbela said ESE should consider adding more equity companies to increase the value traded, which affects the all share index.

He said this was imperative as it would enable businesses to record investment growth and acquire equity financing.

“With equity financing, there is no loan to repay. The business does not have to make a monthly loan payment which can be particularly important if the business does not initially generate a profit. This in turn, gives you the freedom to channel more money into your growing business,” said the economist.