Good morning, let’s get into it!

This week, we are diving into the winners and losers of the Botswana Stock Exchange (BSE) as we move deeper into Q1 2026. Domestic indices have shown resilience, with a handful of counters defying broader economic contractions to deliver impressive yearly returns.

Here is a breakdown of the top performers on a yearly return basis and the stories behind their growth.

Seven years after its audit crisis, Choppies has reclaimed its crown as the BSE's volatility king—this time to the upside. The triple-digit gain is fueled by a massive "comeback" narrative. Investors have responded to the group's strategy of streamlining operations, specifically exiting non-performing units like Zimbabwe, to focus on its high-margin core stores in Botswana and Zambia.

The transition from a building society to a full-fledged commercial bank is finally bearing fruit. BBS saw earnings growth of over 50% this past year. The catalyst? A robust 70% growth in their unsecured loan book and the successful launch of their Business Banking segment in 2025. Despite a tighter liquidity environment in Gaborone, their digital core banking upgrade has allowed them to compete more aggressively for retail deposits.

Sechaba remains a favorite for "defensive" investors. While its capital appreciation is more modest compared to the retailers, its nearly 19% return is bolstered by a steady dividend policy. Improving investor sentiment in mid-2025 saw the stock rise as consumers returned to premium beverage brands following the inflation peaks of early 2025.

As a "route-to-market" giant, CA Sales has benefited from the regional expansion of FMCG goods. Their 2025 interim results showed a 15.5% jump in earnings per share. Their secret sauce has been geographic diversification—expanding warehouse capacity and making strategic acquisitions in East Africa, which insulated them from the specific diamond-related slowdown in Botswana's domestic economy.

The "Digital Shift" is real. BTCL’s growth is no longer tied to traditional voice calls but to the data explosion. Revenues from mobile money and broadband products grew by double digits in late 2025. Their continued investment in network modernization has finally translated into a "warmer" share price, as analysts increasingly view them as a technology utility rather than just a telco.

While these gainers have led the charge, the broader market remains cautious due to structural downturns in the global diamond market affecting government revenue. Keep a close eye on the financial sector's Q1 results—liquidity will be the defining theme for the rest of 2026.

Tune in today to the 2025/2026 budget speech at 1400 HRS

Source: simplywallst