from ODIRILE TOTENG in Gaborone, Botswana
GABORONE, (CAJ News) – THE Botswana Stock Exchange (BSE) has shed off 19,5 percent in equity turnover in the past year as the economy contends with the impact of the coronavirus (COVID-19).
According to the BSE, turnover for the half-year ended June 30 was BWP292,6 million (US$26,64 million), down from BWP363,8 million over the same period last year.
On a half yearly basis, the domestic company index (DCI) has nonetheless depreciated by 3,7 percent compared to a depreciation of 4,4 percent in the same period in 2020.
Local companies contributed 62,4 percent to total equity turnover, or BWP182,8 million in monetary terms while local individuals contributed 7,4 percent or BWP21,7 million in monetary terms during the period under review.
Foreign companies contributed 24,1 percent (BWP70,5 million) to total equity turnover while foreign individuals and brokers contributed 5,9 percent (BWP17,4 million) and 0,1 percent (BWP0,2 million) to equity turnover respectively.
According to the BSE comparative performance of the indices indicate that the domestic market is gaining consistency in terms of positive month-on-month returns since April 2021.
“In addition, listed companies are continuing to pay dividends which tend to augment the capital gains reflected in the DCI.”
The International Monetary Fund (IMF) project Botswana’s diamonds-reliant economy to rebound from the impact of the COVID-19.
It forecast a 7,5 percent increase in gross domestic product (GDP) in 2021.
– CAJ News