It is still too early to determine the full impact of yesterday's events in the US on Botswana. Whilst panic is reigning in global equity markets, there is yet to be reaction on the BSE. The market closed almost unchanged yesterday (up 0.34 points on Monday's close of 2214.43). We expect to get a clearer direction once the market resumes trading, hopefully tomorrow. Investors will probably, adopt a wait and see approach. In any event, we believe the impact in the immediate term will be minimal if any.
On the macro front, any further damage to the US economy will have an adverse impact on Botswana's diamond revenue, which is already some 25% below last year on the back of a sluggish US economy. The US market is the largest consumer of gem stones.
