BSE’S domestic companies Index dropped by 8.2 % in 2020

The Domestic Companies Index (DCI) of the Botswana Stock Exchange (BSE) decreased by 8.2 percent to 6 879 in December 2020, following a decline of 4.6 percent in December 2019. The decline was due to the relatively weak performance, in terms of price per share, of several companies, namely, Lucara (-61.6 percent), Tlou (-60 percent), Seedco (-38.3 percent) and Stanchart (-13.2 percent).

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Bank of Botswana said in its annual report last week that the suspension of Choppies could be an additional factor in the decline of the DCI given its liquidity in the market, as it was the fourth most traded company in the BSE prior to its suspension.

 The Foreign Companies Index decreased by 1 percent to 1 547 in December 2020, from a decrease of 0.5 percent in December 2019. Growth in the Botswana bond index declined from 4.5 percent in December 2019 to 1.2 percent in December 2020, indicative of the slowdown in both the government and corporate indices from 3.6 percent and 7.2 percent in 2019 to 0.9 percent and 2.4 percent, respectively, in 2020. The value of listed bonds at the BSE was P19.1 billion (representing 44 bonds) in December 2020.

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