5 June 2018

Tanzania: DSE Shares High On Expectation of Good Dividend Pay

DAR ES SALAAM Stock Exchange (DSE) plc share has rallied to highest level in this year as dividend-hungry investors' position their portfolio in anticipation of possible dividend payout.

The DSE share was the only gainer on domestic listed stock which ended last week after gaining by 2.15 per cent to 1,900/-. On year to date the self-listed share gained by 66.6 per cent.

According to Orbit Securities weekly market report attributed the share gain to expectation that the self-listed bourse will issue a handsomedividend. "DSE was the only gainer on domestic listed stock counters as dividend-hungry investors position their portfolio in anticipation of possible dividend payout,

the Orbit weekly financial market synopsis report indicated. Going forward, the report said further, DSE revenue stream will be boosted by anticipated new listings. Some of the new listings, such as telcos and mining companies are mandatory.

A fortnight ago, Tanzania Mortgage Refinance Company put on market a five-year 12bn/- bond. The bond, the first tranche of 120bn/-, public sale come to an end this week.

Also investors banked on good return going by DSE plc positive performance in the last eight consecutive quarters despite a recent 14 per cent dip for quarter one of this year.

The bourse financial results showed that listing fees continue to be the main revenue contributor, accounting for 41 per cent of the total revenue for Q1 while averaging 36 per cent for the previous eight quarters.

Investment income also contributes the second highest revenue source given the huge cash and cash equivalent buffer, significant part coming from Initial Public Offer (IPO) proceeds two years ago," Orbit said.

DSE has posted a steady after-tax profit margin averaging over 40 per cent for the last eight consecutive quarters. "Together with positive cash flow for the recent quarters and cash buffer,

DSE has brighter dividend prospects," the report said. Last time dividend was paid was October and was for nine-months - July 2016 - March 2017 - at the rate of 42/- per share.

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