Botswana Stock Exchange heads for best year in a decade
The Botswana Stock Exchange's (BSE) primary index, the Domestic Companies Index (DCI), is on track for its most robust annual performance in terms of share prices since 2013. The performance is driven by significant gains in key sectors such as tourism, banking, and finance.
As of the close of the market on Wednesday, the DCI has recorded a 15% increase year-to-date. Notable contributors to this performance include leading companies such as Chobe Holdings (up 88.6%), Standard Chartered Bank Botswana (up 77.7%), Seedco (up 30%), Absa Botswana (up 22.1%), and First National Bank Botswana (up 21.7%).
This marks a noteworthy achievement for the DCI, as the last time it demonstrated similar levels of performance was in 2013 when it concluded the year with a gain of 17.8%. Subsequently, the index experienced several years of decline, including an 11.3% drop in 2018 and an 8.3% fall in the challenging Covid-19 year of 2020.
Key Takeaways
The Domestic Companies Index (DCI), consisting of the top locally listed companies on the Botswana Stock Exchange, serves as a general indicator of the performance of local enterprises and the returns available to investors. The companies represented in the DCI offer a cross-section of the various sectors within the economy. Data from Stockbrokers Botswana shows that only four among the 23 companies listed on the DCI have experienced net reductions in their share prices this year. Choppies, in particular, has seen a decline of 26.2% as of Wednesday. This positive trend in the Botswana stock market aligns with a broader pattern in Africa. The continent is home to a total of 29 stock exchanges, with a combined market capitalization of approximately $1.6 trillion, as per data from AFSIC (Africa Financial Services Investment Conference). At least three of the largest five stock exchanges in Africa have reached record highs in the current year, reflecting a positive momentum in the region's financial markets.
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