28 January 2013

Tanzania: Business Picks Up At Dar Bourse

AFTER weeks of celebrations, the Dar es Salaam Stock Exchange (DSE) has returned to what brokers know best: Equities are rallying at the finest prices.

The international norm on the bourses in January, according to brokers, equities prices drop during the first month of the year, a period normally clouded with a number of family and firms financial obligations.

But this time around the trend on DSE has completely changed in the first three weeks of this year to puzzle even brokers as shares are on bullish mode while most stocks are trading on high demand and against the normal glut.

Zan Securities Chief Executive Officer, Mr Raphael Masumbuko said psychologically in January share prices are down and is the best buy month but not on this year.

"I think DSE awareness is high this time around than ever before, despite a low turnover to be low," Mr Masumbuko told the 'Daily News' over the weekend.

"Politicians will say the economy has grown so people are out buying more, but I think it is consumers' preference as this month other money market yield rates are still down," the Zan CEO said.

According to Tanzania Securities last week's report, week-on-week turnover dropped by 34.76 per cent to 351m/- from 538m/- while activity levels also shrunk with shares traded plummeting by 430.31 per cent to 386,839 shares.

Tanzania Securities CEO, Mr Moremi Marwa, said increased demand follows people understanding more about the benefits of the 'assets class' (stocks) supported by media, some brokers' analysts and in-depth researches.

"Also good fundamental performances by significant number of companies listed on the exchange, coupled by fine and promising macro economic outlook, makes investors maintain bullish market sentiments - hence more demand and increased prices," Mr Marwa said.

On indexes, the DSE all share index (DSEI) surged up from 1298.00 points of last January to 1491.41 points while Tanzania Share Index (TSI) shot from 1148.02 points to 1454.88 points

Given the number of firms listed and cross-listed on DSE, as the bourse turned 15 years, there are only 17 companies. On average about one and half company is listed a year.

However, in comparison share prices this January has gone up tremendously against previous year. TBL share price climbed from 2,040/- to 2,900/- of last Friday, TOL 200/- to 260/-, Tanzania Tea Packers (TaTePa) 265/- to 440/-, Simba Cement 2,380/- to 4,320/- and Swissport 870/- to 1,720/-.

Others are Twiga Cement 2,080/- to 2,600/-, TCC 3,140/- to 4,320/-, NMB 850/- to 1,180/- and CRDB Bank 150/- to 170/- .

Copyright © 2013 Tanzania Daily News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.