Botswana Stock Exchange (BSE) is viewed as illiquid stock exchange compared to others in the region, but this year the local bourse made history by passing the P50 billion in terms of market capitalisation. Demonstrating just how difficult it was for the banking sector, none of the banks made the top five in share price gains. KABELO ADAMSON reports
The P50 billion feat came in the second quarter as Letshego topped the trades with companies such as Turnstar Holdings and First National Bank Botswana (FNBB) also being the most traded counters. In terms of growth in the share price, Head of Research at Motswedi Securities, Garry Juma said it has been a mixed bag for the local bourse considering that as of this week, not a single company from the banking sector made it into the top five best performing stocks for the year in terms of the share price. Botswana Insurance Holdings Limited (BIHL) is the only company from the financial sector that appears in the top five.
Juma believes the reason why the banking sector did not realise much growth is due to the challenges that the sector experienced from low interests to liquidity challenges. On the contrary, Chobe Holdings and Wilderness Safaris which are both tourism firms made some substantial gains. These are the top five biggest share price gainers:
Chobe Holdings Limited (up 56 percent)
Since the year began up to this week, Chobe share price increased 56 percent, making it the biggest gainer on the BSE domestic bourse. The company’s share price has in the last 12 months rose from 427 Thebe per share to reach 667 Thebe per share.Chobe, the owners and operators of 10 eco-tourism lodges based in the northern part of the country, made a profit of P51.5 million in the year ending February 2014. Chobe has a market capitalisation of P593 million.
Wilderness Safaris (up 55.6 percent)
Wilderness’ lowest stock price for the last 12 months was 310 Thebe per share, but has since increased to 491 Thebe per share during the year. The company, which operates 70 safari camps in seven countries, has seen its share price increase 55.6 percent over the last 12 months. In its unaudited financial results for the six month period ending 31 August 2015, Wilderness recorded a profit of P76.9 million.
Sefalana Holding Company Limited (up 48 percent)
Third on the list is Sefalana group whose core business is in Fast Moving Consumer Goods (FMCG) but has other business interests in different portfolios such as manufacturing and property. Sefalana, currently undergoing transformation to consolidate its assets under one brand, gained 48 percent during the last twelve months. The group’s lowest price for the year was 921 Thebe per share but has since been able to reach 1369 Thebe per share which is its highest price for the 12 month period.
Turnstar Holdings (up 45 percent)
The property investment company, which owns the spectacular Game City shopping mall in Gaborone, features in the top five companies after its share price gained 45 percent during the year. With a market capitalisation of P1.7 billion, Turnstar’s share price traded at 200 Thebe at some point during the year which was its lowest price for the period. It has now increased to 303 Thebe per share as per the second week of the last month of the year. Botswana Insurance Holding Limited (BIHL) (up 31 percent)
This year marked four decades of existence for the financial service group which has one the largest asset managers as its subsidiary, Botswana Insurance Fund Management (BIFM). The group’s lowest price for the year was 1150 Thebe per share while the highest it reached during the same period is 1545 Thebe per share. The group whose subsidiaries include life insurance and fund management gained 31 percent from January this year. BIHL is the only financial sector which features in these top five gainers for the year.