BSE boost market efficiency with news service
Keikantse Lesemela | Wednesday August 20, 2014 10:09
Briefing the media about the service yesterday, BSE chief Executive, Hiran Mendis said the service has been implemented as part of the strategy of making the BSE a repository of exchange related information for the benefit of the market. “This will reduce the asymmetry of information,” he said.
The service, which was launched on the 1st August on a trial basis, will be fully implemented with effect from 1st September 2014. “From this date listed companies information will be released by the BSE through X-News, appearing immediately on both the ATS message (ATSM) board and the BSE website.” Subscribers to the X-News Email service will have the link to the publications dispatched to their designated e-mail addresses within 15 minutes of uploading to the ATSM and BSEW. Mendis said some X-News would also be released in the press as soon as possible following BSE approval.
BSE Listing and Trading Manager, Tsametse Mmolai said X-News would enable punctual fair and efficient release of market information. “A fair and efficient market, without insider trading requires fair distribution of information to exist,” he said. Mmolai further said both BSE and the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) have approved the amendments to the BSE listings requirements to enable full implementation of X-News.
The service also operates at the Johannesburg Stock Exchange and the London Stock Exchange. “ There was a need for us to adopt the same service because Off-Shore investors were unable to access information published in our local newspapers. This service offers value added service with email alerts for those who require constant updates,” he explained. There are currently 37 companies listed on the Botswana stock exchange, with 23 on the domestic board and the rest on the foreign board. Trading on the BSE in the second quarter of 2014 was somewhat depressed as volumes were thin relative to other quarters.
This was mainly due to the despondent activity within the main board as most counters, mainly the blue chips, had released financial results during the first three months of the year.
There were about 125 million shares worth P394million that traded for the quarter and a 39 percent decline from 177 million shares worth P650.6million, which exchanged hands during the first quarter.