12 February 2019

Tanzania: Dse PLC Share Rises Despite Profit Dipping

DAR ES SALAAM Stock Exchange (DSE) share price has gained despite net profit dipping by over last year. DSE share gained by 1.45 per cent to close the week at 1,400/-, indicating investors are upbeat on the future performance of the second largest bourse in eastern Africa.

Orbit Securities said yesterday in a weekly Market Synopsis report that the financial results failed to alter investors' appetite on self-listed bourse stocks.

"The results did not affect investors' appetite on the counter as investors ploughed 20,472 shares to generate a turnover of 28.3m/-," Orbit said in the report. The company's net profit plummeted by 56.7 per cent to 1.68bn/- last year compared with 3.8bn/- recorded in 2017.

The self-listed exchange total operating revenue fell to 6.2bn/- last year from 7.9bn/- recorded during the previous year. The fall in operating revenue attributed to decrease in investment income to 1.5bn/- in 2018 from 2.0bn/- in 2017.

"With the exception of registry and CSD fees, all other revenue streams for the company brought in less income compared to 2017," Orbit report said.

Meanwhile the exchange continued on a bearish movement. Tanzania Share Index (TSI) lost 79.50 points to close the week at 3,534.69 points following a 2.2 per cent decline of the domestic market capitalisation to close last week at 9.28tri/- from previous week's 9.49tri/-.

The drop in domestic market capitalisation and TSI resulted from a 5.65 per cent and 18.6 per cent drop in prices of TBL and NICOL respectively despite a 1.45 per cent price appreciation on DSE counter.

TBL, top mover of the week accounting for 91 per cent of the total equity turnover and closed the week at a price of 11,700/- from last week's 12,400/- as the market eagerly waits for brief financial results for FY 2018 operations.

NICOL closed the week at a price of 175/- from previous week's 215/- after investors began showing interest on the counter at lower prices.

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