Botswana Market Watch | May 28th 2015: Botswana equity market gains 0.1%

Gaborone, Botswana (Capital Markets in Africa):- The Botswana domestic composite index continued to head northwards, gaining 0.08 percent to extend its year-to-date growth by 10.15 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 381.589 billion.

From the market activity viewpoint; the total volume and total turnover were recorded at 8.442 million (increased by 122 percent compared to previous trading sessions) and BWP 96.638million (went up by 1510 percent) respectively exchanging 12 securities. STANDARD CHARTERED BANK Botswana recorded the highest volume at 7.851 million and Botswana Insurance Holdings Limited (BIHL) Botswana recorded the highest traded value of BWP 6.551 million.

Furthermore, BIHL had a 2 session winning streak, as it surged by BWP 0.02 to trade at a new 12 month high of BWP 13.40. Although the insurance giant lost 30 percent of its mandate from the asset management division, it has advanced by 16.4 percent for the year thus far. The insurance environment has become quite challenging as BIHL’s market share within the insurance space in Botswana has reduced to about 75%. On the tourism sector, CHOBE soared by BWP 0.21 as investors took in their recent FY results which were characterized by a 21.8 percent surge in revenues while its profit after tax escalated by 52 percent year-to-year. The tourism outfit was trading at a new 52 week high of BWP 0.501thebe. Meanwhile, Choppies listing on the Johannesburg Stock Exchange continue to excite investors as it edged up to trade at BWP 4.26. Meanwhile Letshego notched down by BWP 0.01 trading at BWP 3.49 as investors locked in profits after a huge rally, following the announcement of a planned 10% share buy-back. The micro lender is trading under cautionary.

On the currency market, the Botswana Pula softened against the rand (depreciated by 0.06 percent) and euro (depreciated by 0.11 percent) but firmed relative to the pound and yen by appreciating by 0.46 percent and 0.64 percent respectively.