- Capital market turnover surges 69% as equities and ETFs lead the charge
- Strong market amid stagnant economy
The Botswana Stock Exchange (BSE) continues to record impressive performance amidst ongoing economic headwinds.
This extraordinary performance, recording explosive growth despite a sluggish economy and subdued output forecasts, is recorded in the BSE’s Market Performance Report for the Period 1 January to 31 July 2025.
According to the newly released BSE Market Performance Report, total market turnover rose 69% to P7.59 billion, compared to P4.48 billion a year earlier. The standout driver was the equities market, which grew by a staggering 485%, from P893 million in 2024 to P5.23 billion this year, said the report.
According to the new data, ETFs also delivered robust growth, while the bond market recorded mixed fortunes.
“Despite macroeconomic headwinds, there’s strong investor confidence, evidenced by surging equity turnover, rising indices, and deepening trading volumes,” the report noted.
It noted that the surge in liquidity was mirrored in index performance. Further, as per the BSE, the Domestic Companies Index (DCI) climbed 4.4%, while the Domestic Companies Total Return Index (DCTRI) rose 8.7%.
The report added that more than half of the listed companies saw their share prices appreciate, led by BBS Bank (+40%), Choppies (+34.6%), and Standard Chartered Bank (+24%).In the ETFs segment, NewPlatinum ETF and NewGold ETF recorded stellar gains of 41.8% and 37.2% respectively, highlighting the growing appeal of precious metals as investment vehicles. The NewPalladium ETF, however, slumped by more than 50%.
However, not all firms were on the winning side: G4S Botswana emerged as the biggest loser, shedding nearly 60% of its value, continued the report.
Further, according to the BSE, trading activity reached unprecedented levels. A total of 1.24 billion shares exchanged hands between January and July, nearly five times the 252.9 million shares traded over the same period last year. Moreover, this pushed average daily equity turnover to P36.8 million, compared to just P6.2 million in 2024 — an increase of almost 494%.
Also, the top traded counters were FNBB (P907.4 million), Sefalana (P584.6 million), and CA Sales (P418.5 million), together accounting for more than a third of total equity turnover, disclosed the BSE.
The investor breakdown revealed a market dominated by institutions. Local institutional investors accounted for 93.4% of equity turnover, while local retail investors contributed 6.3% (P329.4 million). On the contrary, foreign investors played only a marginal role, with just 0.3% of total turnover.
While this underscores the strength of the domestic base, it also highlights an untapped opportunity. The BSE has committed to boosting international participation as part of its new strategic plan.
Regarding the bond market, there was a shift from what was obtained previously. Overall turnover dipped by 39%, from P3.42 billion in 2024 to P2.07 billion this year. The decline was largely due to reduced government bond trading. Corporate bonds, however, were a bright spot, more than doubling to P212.1 million from P94 million last year.
Bond market capitalisation expanded by 12% to P39.2 billion, with government bonds driving the increase.
Additionally, the report stated that the Exchange Traded Funds(ETFs) market continued its upward trajectory, with turnover rising to P295.1 million, a 76% increase over 2024. Trading volumes nearly doubled, reaching 1.2 million units.
The NewGold ETF remained the most traded, contributing P186.4 million in turnover. The NewPlatinum ETF delivered the strongest price gains, reflecting investor interest in platinum, noted the report.
Meanwhile, as Botswana’s economy faces another difficult year, the BSE stands out as a bright spot of growth and resilience. Analysts caution, however, that the market’s heavy dependence on institutional investors could pose risks. They note that expanding retail and foreign participation will be key to ensuring long-term sustainability.
“The low participation of foreign investors creates a clear opportunity for Botswana to expand its investor base and further integrate into global capital markets,” the report observed.
With new initiatives expected in the second half of 2025, the BSE is poised to maintain its upward momentum, reinforcing its role as a resilient pillar of Botswana’s financial sector.
