7 January 2019

Tanzania: Bond, Equity Turnovers Up

Dar es Salaam — Equities and bonds markets at the Dar es Salaam stock Exchange (DSE) recorded positive trends during the fourth quarter of last year, when compared with the third quarter.

The DSE chief executive officer quarterly note for the fourth quarter of last year says turnovers for both bonds and equities market gained.

The bonds market turnover increased by 22 per cent to Sh102 billion during the fourth quarter of last year, from Sh86.97 billion recorded during the third quarter.

Bonds listings also increased by 42 per cent during the quarter.

The current total outstanding bonds at the Dar es Salaam Stock Exchange is Sh9.4 trillion. Government (Treasury) contributing almost 98 per cent of the total value of listed bonds, the rest being corporate bonds.

The note says bonds worth Sh339 billion were listed during the quarter compared to the listing of Sh238 billion during Q3, 2018.

On equities market, the report shows that market liquidity increased significantly during this quarter compared to the third quarter of 2018.

Equity trading turnover increased by 50 per cent, from transaction turnover value of Sh28.17 billion transactions in the quarter ended 30th September 2018 to Sh42.91 billion traded for the fourth quarter of the year.

However, the Weighted Average Market Price Earnings (PE) Ratio for domestic listed companies was trailing by 20.68 times as of December 31, compared to market PE ratio 21.18 times as of September 30.

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 per cent compared to an average of 4.0 per cent in the previous quarter.

Meanwhile, the total capital for the 21-domestic listed companies, as measured by market capitalization, declined by 6.5 per cent during the quarter that ended December 2018 when compared to the quarter ended September 2018.

The total domestic market capitalization decreased by Sh680 billion to close the quarter at Sh9,676 billion compared to Sh10,376 billion as of 30th September 2018 -- this was largely a result of the decrease in share prices for 9 out of 21 counters.

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