Fund managers help work out the fair price for shares. This way, even everyday Batswana can earn money from the stock market.
Smart large investors have a big impact on price movements in Botswana as they dominate trading activity. Asset managers are sitting on a chunk of money following the repatriation of funds from offshore. With increased demand for local shares and investments, trading volumes have grown, and prices on the BSE have been moving up, with all stocks being traded.
In the first half of 2025, total trading on the BSE jumped nearly 490% to P4.73 billion, according to the Botswana Stock Exchange (BSE). That means more investors are buying and selling than before.
Role of Fund Managers
According to the BSE:
- In total, shares worth P4.73 billion were traded. Most of this came from local companies (fund managers), making up almost 98%.Â
- Local people (individuals like me and you) only made up 1.8% of this, showing that few ordinary Batswana are trading shares.
What was happening?
BSE said:
Pension fund changes:Â New rules in 2023 have made pension funds change how they invest money. They are now adjusting where their money is placed locally, with more money coming into Botswana.
Big investors reshuffle: Asset managers are selling some shares to balance their investments and follow set rules and risks.
More people joining in: Even ordinary people are starting to invest more, helped by low inflation, which means they can earn better real returns.
Why This Matters to You
- Stock prices are easier to follow. When more people trade, prices reflect true value faster.
- It’s easier to buy and sell. High turnover means you can enter and exit without big price changes.
- There’s potential for profits. In a low-inflation world, even small returns can outpace rising costs.
“Higher turnover means it’s easier to buy and sell without material price drops, giving retail investors more flexibility,” the BSE explained, adding that institutional trades and broad-based participation help to stabilize price swings, smooth performance and improve liquidity across the entire bourse.Â
“In the current low inflation environment, this presents entry opportunities for other investors and profit-taking opportunities as well, potentially with returns above the low inflation.”
Over time, as companies report profits (or losses), the true picture of price discovery becomes clearer. And stock prices follow intrinsic value.
Read: How the Market Decides What Your Share Is Really Worth
If a business keeps increasing its profits year after year, its intrinsic value grows. And eventually, so does its share price.
Read also:
- Shares Are For All
- What Are You Really Paying For?
- How the Market Decides What Your Share Is Really Worth
