15 May 2013

Botswana Stock Exchange (BSE) has drilled business journalists from various media houses on market reporting.

Speaking at the May 14 training session, BSE chief executive officer, Mr Hiran Mendis said they had realised that most media houses in the country did not report on market issues, hence a lot of important issues remained unreported.

Mr Mendis said what reporters write influenced investors’ choice hence the need for training. Journalists were drilled on the BSE strategy, the terminology and understanding market reports. 

He explained that the BSE strategy was developed to keep constant with the ever revolving world, adding that the local bourse had also improved though a lot still needed to be done.

Meanwhile, the BSE has over the years introduced new products and adapted new technology in a bid to become world standard. 

As such, Mr Mendis said their goal was to become the best stock exchange in Africa. He said it was not possible to concentrate on one product and were among the development of a bond market.

A committee to develop the bond index was set up two years ago, but the worry was that although the average yield was higher than equities, trade in bonds remained low. 

There were government and private sector listed bonds in the BSE offering yields as much as 10 per cent which should be attractive to investors but due to limited coverage in the local media, they have failed to raise much needed capital.

Among the products launched were Cash Securities Depository (CSD) and the exchange traded funds (ETFs). BSE strategy has eight pillars; market development, product development, infrastructure development, CSD, legislature and regulation, organisational structure, financial resources and governance structure.

Since cellular phone coverage in the country has reached 95 per cent, BSE marketing development manager, Ms Lame Akanyang said they were looking into adapting the technology in future. 

BSE product development manager, Mr Thapelo Tsheole said they have developed numerous products such as are diversifying their products by introducing Bettabeta and Newgold.

He said investors failed to take advantage of the products especially Bettabeta when yields reached a 20 per cent peak last year. Thus, he appealed to the media to put an eye on the market. ENDS