Botswana Market Watch | May 27th 2015: Botswana equity market continues the positive trend

Gaborone, Botswana (Capital Markets in Africa):- The Botswana domestic composite index continued to head northwards, gaining 0.01 percent (to close at 10,457.26 point) to extend its year-to-date growth by 10.06 percent. However, the foreign composite index remained flat to close at 1,569 points and year-to-date return is still in the red, reflecting the depressed international commodity market. The equity market capitalization was recorded at BWP 381.455 billion.

Looking at the market activity; the total volume and total turnover were recorded at 3.807 million (increased by 35 percent compared to previous trading sessions) and BWP 6.125 million (a decrease of 73 percent) respectively exchanging 8 securities of 34 listed companies. SHUMBA recorded the highest volume at 3.607 million and STANDARD CHARTERED BANK Botswana recorded traded value of BWP 390,600 million. Also, LETSHEGO turnover was recorded at BWP 542,500.

Looking at the price movers, STANDARD CHARTERED BANK was the largest gainer during the session as it gained BWP 0.05 to trade at BWP 12.60. The retail bank realized a 1% decline in profit after tax for their year-end results. On the retail space, Choppies continued with its uptrend as investors remain positive about its listing on the Johannesburg Stock Exchange. The retail giant has opened over 30 stores in South Africa thus far. Meanwhile, Letshego rebounded to trade back at its new high (after it did a share split in 2010) of BWP 3.50. The micro lender is trading under cautionary which stated that the company has entered into negotiations with a third party in Tanzania to become a 75 percent shareholder in a deposit taking financial institution that specializes in micro finance which if successfully concluded, may result in a transaction that could have an impact on its share price. BOTSWANA INSURANCE HOLDINGS LIMITED GROUP (BIHL) also closed in the black as it reached a new 12 month high of BWP 13.16 after gaining BWP 0.01.

On the currency market, the Botswana Pula depreciated against the US Dollar (0.20 percent), Euro 0.32 percent) and British Pound (0.30 percent and year-to-date of had gave up 2.81 percent on year-to-date basis). However, the Pula appreciated relative to the South African Rand and Japanese Yen by 0.23 percent and 0.16 percent.