Public outrage at price dissemination of of shares
Following the recent Initial Public Offering (IPO) of Botswana Telecommunications Corporation Limited (BTCL), Botswana Stock Exchange (BSE) Chief Executive Officer, Thapelo Tsheole has responded to public concerns over the inability to access the market value of their shares.
As it is, one can only access the value of their shares after market close through the BSE website which publishes the Daily Market Report.
One can also request emails to be sent to them directly by the stock exchange after market close or alternatively wait for media outlets to disseminate the report.
The problem that arises is that at any given time while trading is open, one is ignorant of the value of their shares in real time thus making it arduous to deduce whether one wants to retain their investment or off load it.
When probed on the matter, Thapelo Tsheole remarked that the problem was already in the process of being remedied.
“Currently it (share prices) is not in real time. We have issued a tender to revamp our website. In addition to our website, we’re developing a system called Dynamic Trading System which is a system that is actually going to be taking prices as and when they trade live from the automated trading system and then feeding them to the Website. The tender goes on to say that we are developing mobile apps so that investors can have a BSE app that can tap into your smart phone and then you can get the information on a real time basis”
However, Tsheole was quick to elucidate that the concept of real time should not be taken at face value.
He says one must note that real time prices across a multitude of stock exchanges across the globe are a commodity that is actually paid for.
It is convention, he says, to receive reports that are delayed by 15 minutes while any information before that is usually charged a price for.
“Whatever you see on the New York Stock Exchange website or any other, is not real time, it is actually delayed. The real time information we sell to Reuters, we sell to Bloomberg and they pay us $6000 per annum to receive this type of information. However, delayed information is 15 minutes so you’ll get 15 minutes information in your mobile apps for free.”
In order to facilitate price dissemination the BSE is also in the process of re-launching their social platform presence on the likes of Facebook, Twitter and LinkedIn.
The current public outcry coincides with BTCL’s recent listing as before that the Central Security Depository (CSD), which monitors how many investors are on the system, only had 28 000 investors compared to the 45 thousand they accrued after the listing.
The figure represents close to 5% of the entire population on the last census.
With such a large increase in investors who can’t access their real time share prices, Tsheole says, the latest tender is imperative to remedy the situation.