Botswana | BSE

During the period 1 January to 31 May 2022, the Domestic Company Index (DCI) appreciated by 3.2% in comparison to a depreciation of 4.2% during the same period in 2021 and the Domestic Company Total Return Index (DCTRI) appreciated by 6.9% in comparison to a decrease of 1.1% in the corresponding 2021 period. The Foreign Company Index (FCI) registered a marginal decrease of 0.1% on a year-to-date basis in 2022 in comparison to an appreciation of 0.2% over the same period
in 2021.

During Quarter 1 of 2022, the Domestic Company Index (DCI) appreciated by 3.3% in comparison to a depreciation of 5.1% during the same period in 2021 and the Domestic Company Total Return Index (DCTRI) appreciated by 4.3% in comparison to a decrease of 4.4% in the corresponding 2021 period. The Foreign Company Index (FCI) registered a marginal decrease of 0.0% on a year-to-date basis in 2022 in comparison to an appreciation of 0.2% over the same period in 2021.

The year 2021 can be credited with a lot of positives, even amid the challenges posed by COVID-19. The BSE never had to close the market at any point in time since the pandemic began, thus did not experience any disruption in market operations and did not encounter any adverse issues of compliance on account of this pandemic. The BSE managed to set new records two of which are the highest single day turnover and the two ETFs being listed in one day as well as a total of three ETFs being listed in any given year. These are new milestones in the history of the BSE and we intend to build on these to improve the status of the market. During the year, we commenced the formulation of a new 5-year strategic plan (2022-2026) that seeks to make the BSE a world class securities exchange, particularly in the frontier markets space. The strategy seeks to explore new ways of promoting financial self-sufficiency, new strategies to improve liquidity, policy advocacy, and build a high performance organisation, among others.

The first quarter of 2021 has come to an end. The global economy has enveloped the changed operating environment, as many sectors around the world resumed activity. Global GDP growth for 2021 is now projected at 5.6% (from 2020’s GDP contraction of 3.4%), according to the OECD. The ongoing vaccine rollouts, and additional fiscal support in some countries are expected to be the pillars that will drive the recovery. The vaccine rollout in the last few months, however, has been uneven as many countries remain embattled with pandemic restrictions while infection rates climb back up as variants of the virus emerge. Countries such as the United States and those in Europe, which are significantly ahead of the vaccine race, are likely to be the one of the main pillars of global growth in 2021. Sub Saharan Africa, on the other hand, is likely to drag the growth as it contends with procuring adequate vaccines. A rebound to pre-pandemic levels of the word output is anticipated by mid-2021.

The tables turned for BTCL in the week as the demand surpassed supply for the first time in almost 4 months. The company gained 3 thebe, closing at P0.73/share by the week’s end.Although the stock remains with a year to date loss of 11%, demand at these levels have the potential of further shrinking this position.

Another week, another loss for the BSE indices. The Domestic Company Index (DCI) was down 0.54% owing to a multitude of losses on the local equity market. With no stock going ex-dividend in the week, the total returns index mirrored the move of the DCI, also declining 0.54%.