9 May 2017

Tanzania: Dar es Salaam Stock Exchange Profit Doubles in First Quarter

Dar es Salaam Stock Exchange (DSE) has almost doubled profit after posting 694.68m/- in quarter one of this year.

The bourse, demutualised in 2015, attributed its profitability in the quarter mainly to investment income that raked in 597.35m/- against 128.1m/- of Q1 in 2016.

Also the second bourse in East Africa to demutualise generated its profit from listing fees after climbing up to 567.54m/- from 411m/-. However transaction fee decreased to 250.31m/- from 347.47m/-.

The dropping, according to 'Daily News' analysis, came after most stocks prices decreased heavily in Q1. Though, the bourse quarter-toquarter profit jumped almost twice, in comparison to the last year quarter four net profit slid 11.3 per cent.

In the quarter ended last December, DSE posted a net profit of 732.4m/- well above 694.68m/- of quarter on in this year. Despite reasonable profit in quarter one of this year, the bourse earnings per share went down to 34/- against 36/- of quarter four last year.

DSE stock price, however, lost 11.29 per cent in the last ten day to settle last week trading at 1,100/- a share.

The bourse market capitalisation now stands at 27.1bn/- . In this year's Q1, domestic market capitalisation plunged by 3.0 per cent to 7.5tri/- in comparison to last year's fourth quarter. DSE CEO Quarterly attributed the domestic market cap drop yesterday to foreign investors' activities and demand to fulfill social economic needs.

"... This was a result of selling pressure emanating from socialeconomic needs during the quarter and decreased foreign investors' activity," the CEO said in the note.

The bourse chief said apart from market cap decline, liquidity --trading turnover -- decreased by 8.0 per cent to 75bn/- from 83bn/- in the quarter.

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