Dar Es Salaam — STOCK brokers have ruled out election campaigns as reason for low trading at Dar es Salaam Stock Exchange (DSE), saying the bourse lacks sufficient products.

The assumption is that people have diverted funds that were meant to generate income to funding election campaigns thus cutting equity investments.

The DSE All Share Index (DSEI) had gone down slightly from 1174.57 to 1174.48 points since election campaigns started, signalling the shifting of funds.

The Orbit Securities Company, Chief Head of Corporate and Research, Mr Fortius Rutabingwa said analysis failed to link the campaign trails with trading for local investors. "We may link the foreign investors low participation at the bourse with political happenings but not the locals.

I think the appetite is theirs but we lack products to sale," added Mr Rutabingwa. The DSE low turnover may be explained by local institutions as a move to other investments namely real estate development, the construction of Dodoma University and Kigamboni Bridge.

For example, last week NSSF placed an advertisement in media seeking consultation on power generation.

"This shows that NSSF wants to venture in power generation," Mr Rutabingwa said. Normally the institutions investments such as pension funds and commercial banks at DSE have negative or positive impact at the DSE.

Another broker said that he was optimistic that the bourse index will start to raise again towards the end of this year, as two companies have shown positive interest to go public - namely Precision Air and National Bank of Commerce (NBC).

"The process of listing Precision Air is at a good stage and its IPO will be sometime in November. NBC will definitely be early next year," the broker said.

The announcement of the two cement companies had little impact on the movement of DSEI as both reported profit decline, while Tanga Cement declared dividends of 80/-. Twiga Cement did not announce any half year dividends.