Africa-Press – Botswana. The Botswana Stock Exchange (BSE) had its strongest year end performance, with its benchmark domestic company index (DCI) gaining 15.6 percent in 2023, nearly reaching highs last seen in 2013 when the bourse hit 17.8 percent before it began its descent.
The DCI, which tracks performance of the 23 listed companies that primarily operate within Botswana, closed December 2023 at 8 929.63 points from 7 724.59 points at the beginning of the year. With the BSE’s index up by 15.6 percent, it continues what has been a good run from 2022 after it appreciated by 10.2 percent, the biggest gain since 2015’s 11.6 percent.
The DCI fell by 11.3 percent in 2016, before recovering slightly in 2017 with a 5.8 percent loss, and continued to stumble in 2018, depreciating by 11 percent. In 2019, the DCI narrowed losses to 4.6 percent, and worsened in 2020 when the index contracted by 8.2 percent. However, the DCI grew by 1.9 percent in 2021, making a recovery after six years of downward spiral.
In 2023, from the 23 listed companies on the main domestic board – 17 recorded share price gains, while two companies’ shares remained flat, and four companies lost share price value.
Leading the top five gainers was the tourism and leisure focused group, Chobe Holdings, with its share price soaring by 87.7 percent to trade at P14.85 per share. The luxury safari tourism operator returned to full profitability two years after COVID-19 brought the tourism industry to a standstill. In the financial performance for the year ended 28 February 2023 Chobe’s revenue nearly tripled, surged by 247 percent to P410.9 million, and profit increased by threefold to P104 million, compared to the P42.5 million loss in February 2022.
The country’s oldest operating bank, Standard Chartered Bank Botswana, shot to the second spot after its the share price increased by 84.71 percent to trade at P5.30. The bank which has been operating in Botswana for 126 years reported a profit before tax of P241 million for the six months ended June 2023, the highest half year profit since 2014, and almost triple the P71 million in 2022’s half year pre-tax profit. The bank raked in P253.1 million in profit before tax for the year ended December 2022, significantly higher than the P77 million pre-tax profit in 2021.
Despite 2023 declared a drought year, the only listed agriculture focused company, SeedCo, was the third best performer, rallying by 29.6 percent to trade at P3.50, though the group’s performance was affected by currency fluctuations from other markets it operates in, resulting in a 40 percent lower profit before tax at $5.7 million (P69.8 million) and a 50 percent lower profit after tax of $2.9 million (P35.5 million).
ABSA Bank Botswana, the second biggest bank in the country, recorded a 23.1 percent in growth to trade at P6.35, making it the fourth best performing stock. The bank continues to reap bumper profits, reporting profit before tax of P447.5 million, up from the prior year’s interim profit of P394.8 million. For the full year ended December 2022, ABSA’s profit before tax was P880 million, 33 percent higher than the 2021 profit before tax of P659 million.
In the fifth place, First National Bank Botswana (FNBB), the biggest commercial bank, saw its share price rise by 22.9 percent to trade at P4.30. FNBB delivered its largest profit to date, raking in P1.4 billion in profit before tax, 18 percent higher than the June 2022 profit before tax.
On the losing side, Choppies group, the country’s biggest retailer, experienced a 26.1 percent share price depreciation to trade at P0.48t. The group’s profit before tax was P165 million, down by 8.3 percent from P180 million.
Letlole La Rona (LLR) saw its share price lose 22.4 percent to trade at P2.70. While company remains profitable, a huge divesture by one of the former main shareholders, Grit Services Limited, sent the share price tumbling. According to the financial statements for the year ended June 2023, LLR’s profit before tax jumped by 13 percent to P119.3 million
The security listed company, G4S, experienced a depreciation of 7.5 percent in share price, trading at P2.45 per share, and putting it in third place of badly performing stocks. For the six months ended June 2023, profit before tax fell by 61.2 percent to P1.2 million. The UK headquartered company continues to report dwindling profitability following government decision to reserve security contracts to majority owned citizen companies. G4S reported a loss of P6 million for 2022, compared the P24.5 million profit earned in 2021.
The property listed FPC lost 0.42 percent to trade at P2.39.
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