BSE posts positive outcome for 2014
Keikantse Lesemela | Wednesday January 7, 2015 14:19
Recent data provided by the bourse shows that total turnover for the year recorded as at 12 December 2014 amounted to P2.1 billion, the second highest ever recorded in a similar period since the inception of the stock exchange.
BSE Deputy Chief Executive, Thapelo Tsheole said local companies were major contributors to the turnover, as they accounted for 58 percent in the last quarter compared to 56.5 percent recorded in the same period in 2013.
“Trading was largely accounted for by local companies with dominance in the 3 quarters of 2014. Foreign companies dominated in the second quarter and accounted for 52.7 percent of turnover,” he said.
Contribution to turnover by local individuals improved significantly in the last quarter of 2014 reaching 7.4 percent of total turnover, although it remains below the level of 12.9 percent recorded in the same period in 2013.
According to statistics provided by Stock Brokers Botswana, among the least performing local companies includes the banking sector, as the top two banks appear to be the top poor performing companies in the market. Barclays Bank recorded a low performance rate at 37.6 percent and the First National Bank recording low performance of 10 percent. The top performing companies include Sechaba with 47.9 percent and ABC Holdings with 41.39 percent.
The total value of bonds traded in the period ended 12 December 2014 amounted to P321.6 Million, compared to P94.6 Million over the same period in 2013. The trades were on account of government bonds as was the case in 2013. There was no liquidity in corporate bonds.
In 2014, three bonds were listed (with a total value of P321.2 Million) in comparison to seven bonds in 2013 (with a total value of P949.0 Million). Only one bond has matured thus far in 2014 compared to six bonds that de-listed in 2013. The total number of listed bonds was 37 in 2014 in comparison to 35 in 2013. As at 12 December 2014, the BSE’s debt market capitalisation was P10.1 Billion compared to P9.3 Billion as at the same date in 2013.
However, BSE outperformed other markets such as Johannesburg Stock Exchange (JSE), Stock Exchange of Mauritius Equity Index (SEMDEX) and MSCI Emerging Markets Index (MSCI EM).
The DCI still outperformed the three indices, as the impact of the Pula depreciation against the US Dollar was minimal on the DCI returns relative to the impact the US Dollar appreciation has had on the returns from the JSE and the SEM. During this period the Pula depreciated by 8.2 percent against the US Dollar.
Since the start of the financial crisis in September 2008, the DCI has recovered by 17.5 percent. In comparison, the JSE ALSI and the SEMDEX have grown by 83.9 percent and 26.3 percent respectively.
In April 2013 BSE launched three bond indices, which comprised the Government Bond Index (GovI), the Corporate Bond Index (CorpI), and the Composite Index (BBI). It is noted that the bond indices have been well received by the market with most trustees and custodians using the indices for benchmarking, performance evaluation and pricing of portfolio holdings. In 2014, the BBI registered a return of 4.2 percent, whilst the GovI and the CorpI appreciated by 4 percent and 4.3 percent respectively.