BSE biggest gainers

Good morning, let’s get into it!

The Botswana Stock Exchange has seen some dramatic shifts over the last year. While the broader market has faced headwinds, a handful of companies have delivered exceptional returns for shareholders. Based on the latest market data, here is a breakdown of the top gainers—from the massive turnaround stories to the steady performers—and the catalysts driving their growth.

The Yearly Champions: Top Gainers (1-Year Return)

1. Choppies Enterprises (CHOP-EQO)

• 1-Year Return: +109.6%

• Why it’s gaining: Choppies is the undisputed comeback story of the year. After a period of restructuring, the retailer has successfully executed a turnaround strategy that includes exiting loss-making regions and cutting costs. Their recent financial reports indicate a 19% jump in Headline Earnings Per Share (HEPS), driven by a 10% revenue increase in their core Botswana market. Investors are rewarding the company for stabilizing its balance sheet and returning to profitability.

2. BBS Bank (BBS-EQO)

• 1-Year Return: +40.0%

• Why it’s gaining: BBS has successfully transitioned from a building society to a fully-fledged commercial bank. The surge in share price is largely a reaction to the bank posting its first profit (P38.4 million) since its demutualization in 2018. Aggressive growth in their loan book—specifically unsecured lending, which grew by 70%—has boosted investor confidence in their new commercial strategy.

3. Standard Chartered Bank (SCBB-EQO)

• 1-Year Return: +24.1%

• Why it’s gaining: Stanchart continues to benefit from a high-interest-rate environment, which has bolstered Net Interest Income. The bank has reported strong operating income growth, supported by its "Wealth Solutions" and corporate banking divisions. Their consistent dividend payouts and solid capital position make them a favorite for value investors looking for stability.

4. Botswana Telecommunications Corp (BTCL-EQO)

• 1-Year Return: +22.6%

• Why it’s gaining: BTCL is riding the wave of digital transformation. The company reported a 30% increase in profit (to P259 million), driven by a surge in data usage and the uptake of fibre internet services. As demand for connectivity grows in both urban and rural Botswana, BTCL’s infrastructure investments are finally paying off in the form of higher margins.

5. Sechaba Brewery Holdings (SECH-EQO)

• 1-Year Return: +18.7%

• Why it’s gaining: The post-pandemic recovery is fully realized for Sechaba. The company has reported "exceptional" financial results, with record-breaking earnings from its associates (Kgalagadi Breweries and Coca-Cola Beverages Botswana). The return of consistent volume sales in alcohol and soft drinks has allowed them to maintain attractive dividend yields, drawing income-focused investors back to the stock.

6. CA Sales Holdings (CAS-EQO)

• 1-Year Return: +17.9%

• Why it’s gaining: As a Fast Moving Consumer Goods (FMCG) distributor, CA Sales has shown resilience despite inflation. Their diversified portfolio across Southern Africa protects them from localized downturns, and they have successfully passed on costs while maintaining volume, leading to steady earnings growth.

7. Sefalana Holding (SEF-EQO)

• 1-Year Return: +12.5%

• Why it’s gaining: Similar to Choppies, Sefalana is benefiting from the essential nature of its business (food and manufacturing). Their diversification into property and manufacturing, alongside their core retail business, has provided a hedge against inflation, resulting in steady, defensive growth.

The Weekly Movers: Who Won the Week? (7-Day Return)

While the yearly trends show the long-term winners, the weekly movements highlight where immediate liquidity and news are flowing.

1. Choppies Enterprises (+9.0%)

• The Catalyst: The momentum for Choppies isn't slowing down. The recent 9% weekly jump—with significant trading volume on December 5th—suggests renewed retail interest or institutional accumulation following their positive FY25 outlook. The stock is breaking out as more investors buy into the "turnaround" narrative.

2. Chobe Holdings (+4.2%)

• The Catalyst: After a quiet period, Chobe saw a sudden spike in volume (over 741,000 shares traded recently). While their profits faced slight pressure due to heavy investment in lodge renovations (like the Savute Safari Lodge), the market is likely pricing in a strong upcoming tourism season. The price jump suggests investors believe the capital expenditure will result in higher future yields.

3. BTCL (+4.0%)

• The Catalyst: BTCL continues to grind higher, adding another 4% this week. This is likely a continuation of the positive sentiment surrounding their 30% profit jump and the consistent demand for data services.

4. Sechaba Brewery (+2.7%)

• The Catalyst: Sechaba is a classic "defensive" stock. In uncertain economic times, investors flock to companies with reliable cash flows and dividends. The slight weekly uptick reflects steady accumulation by investors seeking safety and yield.

5. Absa Bank Botswana (+0.5%)

• The Catalyst: A marginal gain, but it signals stability. Absa remains a heavyweight in the banking sector, and while it isn't exploding in value like BBS, it holds its ground as a reliable blue-chip stock.

Source: simplywallst