Africa-Press – Botswana. The Botswana Stock Exchange’s Domestic Companies Index (DCI) closed the week ending November 24, 2023 at 8,878.03 points, reflecting a 0.53 percent increase from the previous week’s 8,830.84 points, figures shared by Stockbrokers show. To date the DCI has gained 14.91 percent.
In tandem, the Foreign Companies Index (FCI) maintained stability, closing the week flat at 2,463.34 points. The Domestic Companies Total Return Index (DCTRI) experienced a similar uptrend, closing the week at 2,730.26 points with a 0.53 percent gain.
The week’s spotlight fell on key market movers, with agricultural supplies company SEEDCO emerging as the standout performer, gaining 64 thebe to close at 350 thebe. On the flip side, mining company LUCARA experienced a setback, losing 5 thebe and securing the unenviable title of the week’s biggest loser, closing at 395 thebe.
Market turnover for the week amounted to an impressive P18,354,758, with notable contributions from FNBB (22%) and CA SALES (22%), showcasing a vibrant trading environment where 4,532,762 securities changed hands.
Zooming out to a broader perspective, the DCI has delivered a commendable performance throughout 2023, boasting a robust 12.1 percent increase in the initial nine months, surpassing the 4.3 percent growth observed in the latter half of the year. Comprising 23 listed companies primarily operating within Botswana, the DCI diligently tracks their performance.
Topping the charts in this bullish landscape is Chobe Holdings, a stalwart in the tourism and leisure sector, witnessing an astonishing 86.6 percent surge in its share price, reaching a significant P14.7 per share. This remarkable turnaround follows two challenging years marked by pandemic-induced adversities in the tourism industry. Chobe Holdings reported a threefold increase in revenue to P410.9 million in the fiscal year ending February 2023, coupled with a profits surge to P104 million, a stark reversal from the P42.5 million loss in February 2022.
Securing the second position, Standard Chartered Bank Botswana saw an impressive 76 percent surge in its share price, reaching P5. The bank reported exceptional financial performance, posting a pre-tax profit of P241 million for the first half of 2023, nearly tripling its 2022 first-half profit of P71 million. The full year ending December 2022 marked a significant improvement, with the bank’s profit before tax reaching P253.1 million, compared to P77 million in 2021.
Claiming the third spot, ABSA Bank Botswana, the nation’s second-largest bank, recorded a 19.6 percent gain in share price, trading at P6. The bank consistently reported impressive profits, with a pre-tax profit of P447.5 million in the current period, up from the previous year’s interim pre-tax profit of P394.8 million. For the full year ending December 2022, ABSA’s profit before tax reached P880 million, a 33 percent increase over the P659 million recorded in 2021.
In the fourth position, First National Bank Botswana (FNBB), the largest commercial bank in the country, observed a 16.3 percent increase in share price during the first nine months of the year, trading at P4. FNBB reported its most substantial profit to date, recording a pre-tax profit of P1.4 billion, an 18 percent increase over June 2022’s pre-tax profit.
Rounding up the list of top-performing stocks, Engen Botswana saw a 14.5 percent increase in its share price, reaching P13. Despite challenges stemming from fluctuating oil prices post-COVID-19 and the Ukraine-Russian war, Engen’s pre-tax profit for the first six months of 2023 dropped by 81 percent to P70 million, compared to the previous year’s P365 million. For the full year ending December 2022, Engen’s pre-tax profit remained almost flat at P353.4 million.
However, amid these success stories, not all stocks enjoyed upward momentum. Letlole La Rona (LLR) experienced a 26.7 percent decline in share price during the first nine months of 2023, trading at P2.55. Contributing to this downturn was a significant divestiture by one of its former main shareholders, Grit Services Limited.
Choppies Group, the largest retailer in Botswana, saw its share price decline by 23 percent, trading at P0.50. Despite reporting a pre-tax profit of P165 million, this represented an 8.3 percent decline from P180 million.
G4S, a security-listed company, witnessed a year-to-date share price return of 7.6 percent, trading at P2.45 per share. The company faced challenges due to government decisions allocating security contracts to majority-owned citizen companies. For the first six months ending June 2023, the company reported a 61.2 percent decline in pre-tax profit to P1.2 million. In 2022, G4S incurred a loss of P6 million, contrasting with the P24.5 million profit in 2021.
Seedco, the sole listed agriculture-focused company, witnessed a 3.7 percent decrease in share price, trading at P2.6, as drought conditions impacted its performance. The property-listed FPC saw a minimal loss of 0.42 percent, trading at P2.4.
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