DAR ES SALAAM Stock Exchange (DSE) domestic market capitalization has declined by 6.5 per cent pulled down by price drop experienced in nine counters in three months to last December.
The decline of share prices for nine out of 21 counters led to the decline of total domestic market capitalisation by 680bn/- to 9.67tri/- in the quarter ended December last year compared to 10.37tri/- of the preceding quarter.
The DSE CEO Quarterly Note reports further that the total capital of the 21 domestic listed companies as measured by market capitalization declined by 6.5 per cent during the quarter under review compared to the previous quarter.
However, the total market capitalization covering all 28 listed equities decreased by 3 per cent to 19.67tri/- in Q4 of last year from 20.29tri/- of the third quarter.
This decline was mainly driven by the decrease in share prices for some domestic listed companies as depicted above.
The decline of foreign investors' participation on the investment side due to changes in monetary policies in the United States of America is one of the factors that contributed to the decrease in share prices at the Dar exchange.
Companies whose share prices declined during the quarter are namely DSE (21 percent) Tanga Cement (15 percent), NMB (15 percent), Precision Air (15 percent), Maendeleo Bank (15 percent), TCCIA Investment (14 percent), NICOL (13 percent), TBL (10 percent) and CRDB Bank (6 percent).
The share prices of the other 12 domestic listed firms remained unchanged during the quarter under review.
On the other side, the market turnover increased significantly during this quarter compared to the third quarter.
Equity trading turnover increased by 50 per cent to 42.91bn/- traded for the fourth quarter of the year from the transaction turnover value of 28.17bn/- in the previous quarter.
Liquidity in the bonds market also increased by 22 per cent, from 86.97bn/- in Q3, 2018 to 106.12bn/-at the end of Q4, 2018.
The Weighted Average Market Price Earnings (PE) Ratio for domestic listed companies was trailing at 20.68 times as of December compared to market PE ratio 21.18 times as of September last year.
This decline was attributed to the decrease in prices for domestic listed counters relative to their earnings.
The trailing weighted average dividend yield (DY) was at 4.3 percent compared to an average of 4.0 percent in the previous quarter.
In the bonds market segment, there was also an increase of 22 percent in bonds trading turnover in the quarter under review.
Bonds trading turnover for the quarter was 106.12bn/-compared to 86.97bn/- bonds transacted in Q3.
Bonds listing also increased by 42 percent during the quarter, bonds worth 339bn/- were listed during the quarter compared to the listing of 238bn/-during Q3.
The current total outstanding bonds is 9.43tri/- government (Treasury) contributing almost 98 per cent of the total value of listed bonds, the rest being Corporate bonds.