14 October 2023
Botswana Stock Exchange’s ( BSE’s ), chief executive officer, Thapelo Tsheole said Wednesday that they are gearing up to float Exchange Traded Fund (ETF) composed of the top 10 USA companies in the near future.
This comes at a time when the BSE is working on a plan with seven other leading bourses across the continent– with a combined market capitalisation of USD $ 2.6 trillion — to get connected.
“We hope to list one ETF this year that will have a basket of the top 10 USA companies. This will include the likes of Apple and others.
“This will give exposure to the top 10 USA companies and exposure to buy shares that are in strong currency such as the US dollars,” he said.
The move is also expected to prop-up the BSE’s image as it races to hit the P 1 trillion in the next two- to three years. BSE is working on broker connection with other African exchanges expected to be operational by early next year.
A capital outlay of US $ 600,000 or P 8.2 million is already in place for the project that will connect Africa in terms of financial services.
“The problem is that people tend to look on the side of goods when talking about trade within Africa. Services can be very big,” he added.
He said the exchanges in Africa are working around the clock to put up a clearing system expected to be operational early next year.
“We are talking to Pan African Settling System to sort things out. The discussions are active now, and we will see in the new year on how things will go,” he said.
The leading stock markets that are trying to get connected are: (BVRM) which are the seven countries of West Africa, Botswana, Egypt, Johannesburg Stock Exchange, Mauritius, Morocco, Nairobi and Nigeria.
The stock markets have 2000 companies with a market capitalisation of US $ 2 trillion.
Meanwhile, NewGold, issued by Absa Bank — an ETF– released a strong set of results this week showing total revenue having gone up from R 41.5 million ( P 29.6 million) to R 71.5 million or P51.1 million like-on-like to end of March 2023.
This shows a 200% growth rate since the ETF was listed on the BSE in 2012.
Source: https://www.sundaystandard.info/bse-to-float-exchange-traded-fund-with-10-u-s-companies/
