The Botswana Stock Exchange (BSE)’s flagship platform, the Domestic Companies Index (DCI) ended the half year 2.47% up, led by Letlole la Rona and other resilient performances in the financial counters.
By comparison, the DCI ended the year to June 30 last year down 3.7%, while in 2020, the DCI was down 4.5% over the same period.
For this year, Stockbrokers Botswana data indicates that counters such as Standard Chartered Bank Botswana, Letshego Holdings and First National Bank Botswana have anchored the stronger half year performance.
However, property group, Letlole la Rona tops the pile with its share price rising by about 45 thebe in the half year.
Letlole, whose existing property portfolio comprises of industrial, retail, residential and commercial office space, announced strong year-on-year distribution growth of 6.01% for the year ending 30 June 2022. A final distribution of P28.1 million was declared, equating to 10.03 thebe per linked unit.
“Despite ongoing macro-economic and sectoral challenges from the aftermath of the COVID-19 pandemic and notwithstanding current inflationary pressures and rising interest rates, LLR is delighted to declare a strong and sustained distribution for the 2022 financial year,” Letlole CEO, Kamogelo Mowaneng said this week.
“The company enjoys high occupancy rates in excess of 99% of gross lettable area and is in a healthy cash position with monthly collections in excess of 100% of amounts billed.
“The solid growth is attributed to interventions relating to excellent asset management, robust rental collection and cost saving initiatives that do not compromise on quality.
“Furthermore, it demonstrates the stable nature of LLR’s portfolio’s which is underpinned by our “Go-TO-Africa” strategy, of which our first transaction has been tabled for shareholder approval.”
The surprise of the period for the DCI, however, has been the Botswana Telecommunications Corporation Limited, whose share price gained nearly three percent during the half year.
The telecomms group has perennially been amongst the DCI’s losers for most of the six years since it listed in 2016.
On the other end of the scale, the worst performing counters on the DCI for the half year include BBS Ltd which by June 30 had shed 39%, and Choppies down 18% over the same period.
