
By Avite Mbabazi
The Eswatini Stock Exchange (ESE) is urging all financial market players, big corporates, and SMEs to help grow the exchange and capital markets of Eswatini as they both represent crucial national assets. The ESE has also encouraged current shareholders to dematerialize their stock holdings.
The ESE aims to enable companies to list and investors to trade in securities. This year has been quite notable with the ESE migrating its activities to the Automated Trading System (ATS).
According to the ESE October 2022 month-end report, electronic trading commenced on 17 October 2022 and only securities that have been transferred and registered in the Central Security Depository (CSD) will be traded in the Automated Trading System (ATS).
“Going forward, after implementation of the systems, all new Initial Public Offerings (IPOs) and subsequent trading will be made in the CSD and the ATS, respectively” notes the report.
Additionally, the ESE is requiring that shareholders open investor accounts and dematerialize their securities (migrating from paper-based titles to electronic securities) in preparation for the trading of electronic-based securities following the implementation of the CDS and ATS systems. Therefore, current shareholders are encouraged to contact a registered stockbroker, custodian bank, or transfer secretary to dematerialize their stock holdings.
As it stands, the Royal Eswatini Sugar Corporation (RES) remains the company with the highest market capitalization amongst all other companies listed on the ESE with a market cap percentage of 33.56%, which translates to E1.464 Billion. Moreover, as of 31 October 2022, total government bonds stood at E5. 865 Billion, month-on-month, government bonds activity increased by E 412,205,000.
Meanwhile, the total Corporate Bonds value stood at E1.619 Billion with a month-on-month decrease of E22, 673,200. The month of October 2022 had 5 trades. Month-on-month, the value traded decreased by 130.21% to E231, 430 in October 2022 from E532, 780 in September 2022.
There are 7 listed equity companies on the ESE and they are all locally based. On the other hand, Issuers of debt securities in the country include the government of Eswatini which issues bonds to raise the money needed to meet long-term budgetary needs.
5 thoughts on “Big Corporates & Local SMEs Called Upon to Grow the Eswatini Stock Exchange”
Comments are closed.