Staff Writer
The Botswana Stock Exchange(BSE )’s strong 2025 performance masks a market increasingly dominated by local institutional investors, with retail and foreign participation remaining marginal despite a sharp rise in trading activity.
This is according to the recent BSE Market Performance Report for January to November 2025 released last week.
According to the BSE, while total equity turnover ballooned to P5.47 billion, nearly four times higher than in the same period last year local institutions accounted for an overwhelming 92.4 percent of that activity, equivalent to P5.05 billion. By contrast, local individuals contributed just 6.8 percent, while foreign investors together accounted for less than one percent of equity trades.
The BSE noted that the surge in turnover pushed average daily equity trading to P24.3 million, up from P6.5 million in 2024, signalling renewed confidence in the market. However, the report suggests that this confidence has been concentrated among pension funds, asset managers and other large local players rather than being broad-based across investor classes.
Further, the report highlighted that market indices reflected the improved sentiment. The Domestic Company Index rose by 6.5 percent, while the Foreign Company Index gained 15.6 percent, its strongest showing in recent years. Furthermore, total equity market capitalisation expanded to P708.2 billion, supported mainly by gains in foreign company listings, which now account for more than P650 billion of total market value, noted the BSE.
Additionally, the report revealed that trading was also highly concentrated in a handful of stocks. FNBB, Sefalana and Sechaba together accounted for over a third of total equity turnover, highlighting liquidity challenges for smaller counters despite the fact that 32 of the 33 listed companies recorded some trading activity during the year.
As per the data, beyond equities, the report points to a growing appetite for alternative instruments, particularly Exchange Traded Funds linked to precious metals. NewGold and NewPlat ETFs delivered price gains of more than 60 percent each, reflecting global commodity trends and offering investors exposure beyond traditional shares.
Moreover, the bond market told a different story. According to BSE, government bond trading slowed sharply, contributing to a 52 percent decline in overall bond turnover. Nevertheless, corporate bonds gained traction, with turnover rising by more than 68 percent, suggesting a gradual shift toward private sector debt instruments.
Overall, the 2025 performance underscores a market that is deeper and more active, yet still narrowly held.
