The Botswana Stock Exchange Foreign Companies Index (BSE-FCI)

The Botswana Stock Exchange Foreign Companies Index (BSE-FCI) is a market capitalisation weighted index that tracks the performance of foreign companies listed on the Botswana Stock Exchange (BSE). The BSE-FCI is a valuable tool for investors looking to gain exposure to foreign companies operating in Botswana and the broader Southern Africa region.

The BSE-FCI is composed of companies that are incorporated outside of Botswana but have a primary listing on the BSE. The index is calculated using free float market capitalisation, which means that only the shares of a company that are available for public trading are included in the index calculation. This method ensures that the index is representative of the market and not skewed by large, closely held positions.

The BSE-FCI is reviewed on a quarterly basis, and any changes to the index are made at the close of business on the last day of the quarter. The index is calculated in both Pula and US dollars to provide investors with a choice of currency.

Investors can track the performance of the BSE-FCI through a variety of financial products, including exchange-traded funds (ETFs) and index-tracking mutual funds. The BSE-FCI is also widely used as a benchmark for active fund managers and as a performance benchmark for foreign companies listed on the BSE.

Overall, the Botswana Stock Exchange Foreign Companies Index (BSE-FCI) offers a unique opportunity for investors to gain exposure to foreign companies operating in Botswana and the Southern Africa region, providing diversification and a benchmark for performance. As the BSE continues to grow and attract more foreign companies, the BSE-FCI will become an increasingly important tool for investors looking for opportunities in the region.