LEADING ON THE MARKET: BTCL

Corporation take lead in share trading for first time

For the first time last week, Botswana Telecommunications Corporation Limited (BTCL) took a lead in terms of share trading.

In a week in which the market took a breather, trading only 115, 000 shares valued at P116, 000 a report from local brokerage firm, Motswedi Securities, indicates BTCL dominated the trading of shares.

During the week, BTCL traded stock of 108, 000 shares valued at P94, 000.

The move has reportedly eased pressure on the share price, which is currently 8 thebe lower than its year opening, translating to 8.4 percent year-to-date loss.

BTCL shares are currently trading at 87 thebe, down from 95 thebe at the start of the year.

The corporation, which publicly listed on the Botswana Stock Exchange Limited (BSEL) in 2016 at an Initial Public Offering (IPO) of P1.00, has seen its share price crash from a peak of P1.85.

BTCL is owned in majority by government, who control 51 percent of the company shareholding.

Despite struggling with the share price growth, analysts at Motswedi Securities note that the company has one of the most attractive dividend yield in the local market at 9.8 percent against the market’s dividend yield of 5.3 percent.

Meanwhile, companies that joined BTCL as the only ones that have traded were commercial banks, with FNBB producing a turnover of P20, 500 while BancABC’s turnover was P470.

During the period, Botswana Insurance Holdings Limited (BIHL) traded shares worth P950.

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