12 Jan 2020

The author of Understanding the Stock Market, Mr Kago Keotshwaetse, says financial literacy is critical to trading successfully in the stock market.

Mr Keotshwaetse said in an interview that while stock markets were a complicated global system that could change with any shock, trading in the stock market had potential to create wealth for any individual.

He said Batswana needed to understand how the stock market worked in order for them to take advantage of viable stock options in the Botswana Stock exchange (BSE).

According to Mr Keotshwaetse, writing a book gave him insight into the investment mindset of Batswana, where he discovered that most Batswana were risk averse.

He said his survey revealed that Batswana stock buyers were short term investors, who immediately sold their stocks off once an investment started showing head-winds of uncertainty.

He warned that selling stocks willy-nilly was a bad investment decision if buyers and sellers did not understand the stock market environment, revealing that the BSE had shown noticeable growth and demand.

Mr Keotshwaetse said Botswana was a desirable stock market environment because of its political stability, urging Batswana to take advantage of this factor to accumulate wealth.

He advised Batswana to take up more stock options to improve their holding of domestically traded companies, noting that the market had much turnover for stocks belonging to foreigners, while nationals held less.

Understanding the Stock Market, was a tool through which Mr Keotshwaetse intended to help Batswana understand the stock market.

In the foreword, BSE chief executive officer, Mr Tshepo Tsheole, explained the importance of educating people about the stock market, saying BSE was advocating for stock market education in schools.

He further stated that the stock market was not only for the wealthy and foreigners, but could also be a great source of capital raising for domestic grown companies. ENDS