As the economic climate begins to warm up, the Botswana Stock Exchange's domestic board jumped 18.2 percent year on year in February, a month in which the exchange recorded a P89 million transaction - the largest ever recorded.

Month on month, the BSE's domestic bourse grew by 4.8 percent to close February at 7 682.48 points. Trade figures seen in February were among the highest seen on the local exchange in the last 12 months. Analysts believe the exchange's performance is indicative of the gradual recovery in the economy as well as growing appetite for risk among investors. In addition, the growth has been the direct result of the reporting season.

Last month's trading was also boosted by a P89 million transaction, recorded on February 16, involving 5.4 million Letshego shares.

Although no details could be obtained about the buyer or seller in the transaction, speculation is rife that the transaction could have involved the International Finance Corporation and one or more local fund managers who already have shareholdings in Letshego Holdings.

In the deal, each share was priced at P16.50, with the volumes traded helping propel the domestic index closer to the 8 ,000 point mark, compared to a low of 6, 000 last May.

"We handled the sale of 5.4 million shares between foreign and local clients, with the shares priced at P16.50. We cannot reveal any further details regarding the identity of the buyers and sellers involved," African Alliance officials said yesterday.

On the market's general performance, Motswedi Securities' analyst, Garry Juma said growth was largely seen in the large cap stocks, with Letshego, Standard Chartered, Barclays and First National Bank of Botswana among those leading the charge.

"The major stocks drove the domestic board, especially in the first half of February. Investors took positions waiting for the release of results.

"The growth seen in February may also be a reflection of a bit of investor confidence returning to the market and a higher appetite for risk than before.

"The improved confidence in the local economy could also be helping the performance of the local bourse," he said.

However, FNBB has taken a knock in the past two weeks pulling the Domestic index down.

Stockbrokers Botswana's Mothibi Mosimanegape said positive signs were evident on the stock exchange's domestic board.

"Generally, there is good confidence on the market now, we are seeing orders on many counters. Confidence has long returned to the market in the third quarter of 2009 and by end of 2009 the market was at full swing," he said.

Capital Securities' analysts said the large caps contributed 82 percent to the domestic bourse, leaving February's market capitalisation at P30.3 billion. Of the 20 counters on the domestic board, 19 traded over the month, 16 closing heavier, six beating the index, three unchanged and only one - Olympia - losing ground.

With companies such as RPC Data, RDC Properties, Sefalana, Sefcash, FNBB, G4S and BIHL publishing results last month, analysts had expected the domestic index to head northwards.

In the last two weeks, the index has slowed gradually due to profit-taking. Analysts expect the trend to continue in the short term.