23 January 2018

Tanzania: DSE-Listed Firms See Share Value Rise By 5.5%

The domestic market capitalisation at Tanzania's Dar Stock Exchange (DSE) rose by 5.5 per cent in the fourth quarter of 2017 buoyed by three counters to $4.5 billion from $4.3 billion in the previous quarter. Domestic Market Capitalisation refers to the value of listed shares held by local investors.

According to the DSE chief executive officer quarterly note the share prices of Tanzania Breweries, Vodacom Tanzania and Tanzania Cigarettes Company were the best performing counters.

The note also shows that DSE market liquidity recorded a significant increase during the quarter with turnover rising by 51 per cent to a transaction value of $86.45 million from $57.19 million in the second quarter.

During the period under review, the total market capitalisation, which includes shares held by foreign investors, recorded significant increase of 13 per cent to $10.22 billion from $9.02 billion in the previous quarter.

In the first quarter for instance, the DSE bourse saw mixed results with total capitalisation plunging by 90 per cent to $3.29 billion in the first quarter. It has since recovered to $10.23 billion.

The drop was a result of foreign investors selling off their stocks. This has seen the liquidity within the bourse tighten following the country's change of policies especially in the mining sector, which has several firms listed at the Dar bourse.

DSE has 18 listed firms in the banking, energy, manufacturing, agriculture, insurance, mining and commercial services sectors, with seven of them cross listed at the Nairobi Securities Exchange. In 2017, it added Vodacom Tanzania through its debut Initial Public offer.

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