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Local equity market stagnates as trading activity declines

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Market capitalisation.
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MBABANE – Local equity market capitalisation remained stagnant in March, reflecting subdued activity on the Eswatini Stock Exchange (ESE) despite marginal year-on-year growth and isolated gains among listed counters.

According to the ESE Month-End Report for March 2026, total market capitalisation held steady at E6.93 billion between February and March, signalling a lack of price movements across listed equities during the period under review.

This stagnation comes at a time when the local bourse continues to grapple with low liquidity and limited trading volumes.

While the month-on-month performance remained flat, the market recorded a modest annual increase of 1.12 per cent, rising from E6.86 billion in March 2025 to E6.93 billion in March 2026. This suggests that although the market is not contracting, growth remains slow and largely constrained by inactivity rather than structural decline.

The report highlights that the ESE continues to operate with a relatively small pool of listed companies, with 10 firms on the Main Board. There were no new listings during March, maintaining the same number recorded in February.

Market capitalisation remains heavily concentrated among a few dominant players.

First National Bank of Eswatini continues to hold the largest share at 28.45 per cent, followed by Royal Eswatini Sugar Corporation at 23.63 per cent and SBC Limited at 14.27 per cent.

Other notable contributors include Greystone Partners Limited (9.95 per cent), Swazi Empowerment Limited (9.87 per cent) and Nedbank Eswatini Limited (5.86 per cent). Smaller players such as Inala Capital Limited and AGSPAC Limited account for marginal shares of the total market value.

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All Share Index remains unchanged

MBABANE – Mirroring the stagnant market capitalisation, the ESE All Share Index remained unchanged at 493.16 in March, reflecting the absence of share price movements across listed counters.

On a year-on-year basis, the index recorded a slight increase of 0.96 per cent from 488.49 in March 2025, further reinforcing the narrative of slow but positive growth.

The lack of movement in both market capitalisation and the All Share Index points to subdued trading activity, with investors largely holding positions rather than actively buying or selling.

Despite the overall stagnation, some individual counters showed notable performance on a yearly basis.

SBC Limited emerged as the top performer, registering a 13.89 per cent increase in its share price, while Nedbank Eswatini Limited posted a 10 per cent gain. These gains indicate pockets of resilience and investor confidence in specific sectors, particularly financial services.

However, not all companies shared in this upward trend. Greystone Partners Limited recorded a decline of 11.76 per cent in its share price over the same period, highlighting uneven performance across the market.

The majority of listed companies saw no change in their share prices year-on-year, reinforcing the broader theme of limited activity and price discovery within the market.

One of the most striking features of the March report is the sharp drop in equity turnover, which underscores the subdued state of trading on the exchange.

The total value traded in March amounted to just E23 214, a significant decline from E1.42 million recorded in February. Only 9 938 shares were traded during the month, pointing to extremely low market participation.

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Govt bonds remain stable but grow annually

MBABANE – The government bond segment remained unchanged in March, with total outstanding bonds holding steady at E7.67 billion. There were no new issuances or maturities during the period under review.

However, on a yearly basis, government bonds recorded significant growth of 19.02 per cent, rising from E6.45 billion in March 2025. This increase reflects continued government borrowing to finance development projects and fiscal obligations.

The stability of government bonds, coupled with their growth, highlights their role as a key component of the domestic capital market, offering relatively low-risk investment options.

The number of market participants remained unchanged in March, with three stockbroking firms, four custodian banks and one government debt sponsor operating on the exchange.

This stability in market infrastructure suggests that while the institutional framework is intact, the challenge lies in stimulating activity and attracting more participants, particularly investors.

The report also highlighted key corporate developments, including a cautionary announcement from Royal Eswatini Sugar Corporation.

*Full article available on Pressreader*  

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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