Dividends push up Dar es Salaam bourse trade

DSE brokers
The Dar es Salaam Stock Exchange (DSE) trading activities are set to increase as the bourse enters into the season of annual dividends.

Traditionally most DSE's investors are targeting dividends as their main investment returns instead of capitalising by buying and selling when share prices fluctuates.

Orbit Securities Head of Operations and Dealings Juventus Simon told the 'Daily News' that shares demand are expect to surge this week as companies announce their full year results.

"Share prices have started to go up, as investors want to cash in on dividends," Mr Simon said.

The share prices of Swissport have gone up from 810/- early this month to 1,000/-. Twiga Cement shares have also gone up by 4.0 per cent to 2,400/- minutes after the bourse opened its doors after the firm announced dividends.

Twiga announced a fully year dividend of 180/- per share, of which 40/- was paid as interim dividend last year. The 2011 dividend is an increase of 29 per cent compared to 139/51 paid in 2010.

"The 29 per cent increment is good take - we are likely to see the demand of the firm shares increase in the cause of the week," Mr Simon said. The firm posted a slightly net profit increment of 0.4 per cent to 50.61bn/-.

TBL share prices bounced back to 2,600/- after dropping to 2,500/-after announcement of full year dividend of 200/- a share, which will trade cum dividends up to mid April.

 "Investors want to get a full dividend when shares are still trading cum-dividend," the head of dealings and operations said, "after that the window will be closed  - and this is the time."

Shares are normally trading cum-dividend for about a month after the firm declared the amount of dividend offered. The doors are closed to trade ex-dividend.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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