Botswana Market Watch | June 11th 2015: Botswana domestic composite index retracted its upward impetus, market cap loses BWP 103 million

Gaborone, Botswana (Capital Markets in Africa):- The Botswana domestic composite index retracted its upward impetus, by losing 0.93 percent to reduce its year-to-date return by 11.52 percent. However, the foreign composite index gained 0.03 percent to close at 1,570.76 points and year-to-date return is still in the red at -0.43. However, the equity market capitalization fell by BWP 103 million (relative to precious trading sessions’ market cap of BWP 382.152 million) to end the day at BWP 382.049 billion.

From the market activity viewpoint, markets were active as huge volumes continue to exchange hands reflecting positive investor sentiments towards local equities, with notable trades from some of the large caps like Choppies. The market total volume was recorded at 3.476 million (an increase of 27 percent relative to yesterday volume of 2.730 million) and turnover was ended at BWP 32.417 million). CHOPPIES Botswana recorded the highest volume at 1.425 million accounted for almost 41 percent. It is followed by New African Properties Botswana with volume of 511,511. Others most traded securities by volume were Botswana Insurance Holdings Limited recorded a volume of 15,000 traded securities and BARCLAYS recorded volume of 12,710. While on the foreign desk, 1.5 million shares were traded with market turnover of BWP 24.525 million mainly from Lucara.

Looking at the price movers’, CHOPPIES gained 0.7 percent (with year-to-date return of 10.5 percent) to close the day at BWP 4.49. On the negative territory, LETLOLE plunged by 0.9 percent (dragged the year-to-year yield to 1.4 percent) to trade at BWP 2.18  and LUCARA shed off 2.1 percent and BWP 0.04 trading at BWP 3.40 and BWP 4.46 respectively.

On the currency market, the Botswana Pula (BWP) appreciated against the US Dollar and Japanese Yen but lost traction relative to the South African Rand and  British Pound. The Pula depreciated by 0.02 percent against South African Rand and depreciated by 0.31 percent against British Pound. However, appreciated by 0.20 percent (to close at BWP 1 to US$0.1007), 0.49 percent (to trade at BWP 1 to Euro 12.41) against US Dollar and Japanese Yen respectively. But remained flat against Euro.