ESE SEES MARGINAL DECLINE IN JAN

MBABANE - The Eswatini Stock Exchange (ESE) started the year with a mixed performance, as highlighted in its January 2025 month-end report. The market witnessed marginal declines in overall capitalisation and share index, but there were notable gains in individual stock performances.The total market capitalisation of the ESE stood at E6.864 billion at the end of January 2025, a slight decline of 0.01 per cent from E6.865 billion in December 2024. This dip was attributed to price adjustments in some listed equities. However, on a year-on-year basis, the market showed resilience, recording a 3.46 per cent increase from E6.634 billion in January 2024. Similarly, the ESE All-Share Index closed at 489.12, down marginally from 489.19 in December 2024, reflecting a minimal 0.01 per cent decline.

Comparison

However, in comparison to January 2024, when the index stood at 472.77, this represented an annual gain of 3.46 per cent, underscoring a generally positive long-term trend.
The ESE maintained its nine listed companies, with no new entrants recorded in January. Among them, First National Bank Eswatini (FNBE) remained the largest company by market capitalisation, commanding 28.73 per cent of the total, followed by Royal Eswatini Sugar Corporation (23.86 per cent) and SBC Limited (12.51 per cent).

In terms of share price movements, Nkonyeni Pre-cast Limited recorded the highest gain with a 25 per cent increase, rising from 120 cents per share in January 2024 to 150 cents in January 2025. Royal Eswatini Sugar Corporation also showed strong performance, appreciating by 11.84 per cent from 1 520 cents to 1 700 cents per share. Other notable gainers included Nedbank Eswatini Limited (3.45 per cent), Swaziland Property Investments Limited (1.27 per cent), and Greystone Partners Limited (0.29 per cent).

However, not all stocks fared well. Inala Capital Limited suffered the largest decline, dropping 20 per cent from 150 cents per share in January 2024 to 120 cents in January 2025.
Market liquidity remains a significant challenge for the ESE, as reflected in the sharp decline in the total value of shares traded. In January 2025, total equity turnover stood at E57 000, a dramatic drop from E769 900 in December 2024. Compared to January 2024’s turnover of E74 000, this represents a 23.39 per cent decline.

Participation

Only 15 000 shares were traded during the month, reinforcing concerns over low trading volumes. This highlights the urgent need for increased investor participation and the introduction of liquidity-enhancing mechanisms by the ESE. The bond market saw contrasting trends. Corporate bonds on the ESE stood at E1.879 billion at the end of January 2025, a 2.84 per cent decrease from E1.935 billion recorded in December 2024. The drop was attributed to the maturing of two corporate bonds—SBC Limited (E10 million) and Select Limited (E48.3 million). Despie the monthly decline, corporate bonds demonstrated significant year-on-year growth of 21.19 per cent, rising from E1.550 billion in January 2024.

In contrast, government bonds saw a monthly decline of 8.34 per cent, dropping from E6.598 billion in December 2024 to E6.048 billion in January 2025. This was primarily due to the maturity of an Eswatini Government bond valued at E150 million and a reopening of the same bond worth E400 million. However, government bonds posted an annual increase of 5.07 per cent from E5.756 billion in January 2024. Swazi Empowerment Limited (SEL) declared a final dividend of E9.25 million, translating to 50 cents per share, to shareholders registered as of February 14, 2025.

This move signals confidence in the company’s financial health. Additionally, SEL published its interim results for the six-month period ending September 30, 2024, on January 15, 2025.
The ESE continues to encourage more local companies to list and expand investor participation, emphasising economic empowerment and financial inclusion. However, challenges such as low trading volumes and liquidity constraints remain key hurdles. Going forward, the focus for the ESE will likely be on attracting new listings, introducing innovative financial products and improving market liquidity to ensure sustainable growth and resilience in Eswatini’s capital markets.

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