The Botswana Stock Exchange (BSE) has witnessed impressive performances from the country’s listed commercial banks, which have emerged as some of the biggest gainers this year. Leading the charge is Standard Chartered Bank Botswana, whose share price surged by an impressive 32.3% as of November 2024, continuing the bank’s remarkable performance from 2023 when its share price jumped by 85%.
In 2024, Standard Chartered’s performance has outshone many, firmly establishing itself as the top performer on the BSE. The bank’s strong growth is especially notable considering it was second only to Chobe Holdings last year, whose share price saw a nearly 88% increase. This year, Stanchart’s 32.3% rise is followed by First National Bank Botswana (FNB), which recorded a 16.3% gain in its share price by the end of November. Absa Bank Botswana, the third listed commercial bank, also enjoyed a notable 8.8% increase in share price over the same period.
The performance of these financial institutions has played a pivotal role in driving the BSE’s overall success in 2024. Botswana Insurance Holdings Limited (BIHL), the largest and most diversified financial sector group in the country, saw a 10% increase in share price over the period, further cementing the financial sector’s dominance on the Exchange.
Other stocks leading the BSE through November 2024 include leisure tourism group Chobe, which saw a 16.9% increase in its share price, as well as Choppies (up 8.3%) and Engen (up 7.5%). These strong performances have contributed to a positive year for the Exchange overall, with the financial sector players standing out as key drivers of growth.
Analysts have attributed the robust performance of local equities in part to legislative changes initiated by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA). These changes facilitated the repatriation of pension fund assets, which has led to increased liquidity in the local capital market. With asset managers eager to invest in the limited available assets, such as shares, the increased competition has driven up prices and bolstered the overall performance of the BSE.
As the year continues, there is a growing expectation for further positive movements in the market, with analysts keeping a close watch on the performance of these key financial sector stocks. The BSE’s growth, particularly in the financial sector, indicates a positive outlook for the country’s capital markets in the coming years.
