Trading for bonds slows

Botswana Stock Exchange latest market performance report has reported a slow down in the country bond market trading activities. The bourse’s first half trade of bonds slopped despite increase in the market capitalisation of listed bonds. “The value of bonds traded during the year-to-date period was P523.8 million compared to P755.7 million traded during the same period in 2018,” said the report. However, on the back of government bonds’ re-openings and new corporate issuances, the market capitalisation of listed bonds increased to P15.8 billion compared to P14.6 billion as at the same period in 2018.The report further highlights that the BSE registered two bond listings in the first half of 2019, being the RDCP001 for P47.35 million, and CGL001 for P128.51 million. Last month, the Botswana Bond Market Association hosted Bond Market Conference under the theme ‘Strengthening the Bond Market to Support the Fiscus and Private Sector Development’ to reflect on the status of the bond market, the progress in addressing impediments and to formulate reforms for further deepening of the bond market. Over 200 delegates attended with speakers from the Macro economic and Financial Management Institute of Eastern and Southern Africa (MEFMI), the International Finance Corporation (IFC) and African Development Bank (AfDB). On the same occasion, the BBMA officially launched the 5th Anniversary BBMA Publication titled “Understanding the Botswana Bond Market” detailing the history of the Botswana bond market, the achievements of the BBMA, peer comparisons with other bond markets, among other topics. The publication is in line with the BBMA’s strategy of 12 promoting skills development, information dissemination, and investor participation in the bond market.