BSE in mixed trading in Q1 and Q2

The Domestic Company Index (DCI) of the Botswana Stock Exchange (BSE) lost ground in the first two quarters of the year reversing the gains it made on the comparative period in 2015. The BSE said on its market performance report up to the period ended June 30, 2016, the DCI depreciated by 3.8% in quarter 1 and further depreciated by 1.2% in quarter 2.

“On a year to date basis, the DCI depreciated by 4.9% in comparison to the 12.5% appreciation during the same time in 2015,” it said.

However, the Foreign Company Index (FCI) appreciated by 1.5% on a year to date basis, due to increases of 0.4% and 1.1% in quarter 1 and quarter 2, respectively. In 2015, the FCI had depreciated by 0.4% as at the end of quarter 2.

The BSE added that as at June 30, 2016, it had recorded a turnover of P1,635.0 Mn from 483.1 Mn shares traded. During the same period in 2015, the BSE had registered a turnover of P1,502.6 Mn and a total volume of 395.6 Mn shares traded.

The bourse said the stability of turnover deteriorated in 2016 in comparison with the preceding 4 years. Further, 2016 recorded a higher coefficient of variation of turnover of 3.5 compared to the 1.6 and 2.3 recorded in 2015 and 2014, respectively.

“This deterioration in the stability of turnover is attributable to the record turnover of P494.3 Mn realised on 15 June 2016, the highest amount of turnover ever recorded on the BSE in a single day.”

The top 3 companies on a year-to-date basis in terms of value traded were Letshego (P500.8 Mn), New African Properties (P466.6 Mn) and Sefalana (P175.9 Mn).

These accounted for 69.9% of total turnover generated in the first half of 2016. In the same period in 2015, the top 3 traded companies in terms of value were Letshego (P439.3 Mn), Sefalana (P213.1 Mn) and FNBB (P181.5 Mn) and they accounted for 55.5% of turnover.

In quarter 2 of 2016, the contribution to turnover by local companies declined to 54.3% from 76.1% in quarter 2 of 2015. An improvement was noticed in respect of local individuals with their contribution to turnover rising to 3.3% in Quarter 2 of 2016 relative to 2.1% in the same period in 2015.

During the period 1 January to 30 June 2016, local companies contributed 52.9% of total turnover compared to 66.0% in the corresponding period in 2015.

Further, local individuals contributed 3.6% of total turnover realised during the period 1 January to 30 June 2016 compared to 2.6% in the corresponding period in 2015. Similarly, turnover attributable to local retail investors during the first half of the year increased from P39.1 Mn in 2015 to P58.9 Mn in 2016.