Dar bourse posts vibrant performance

The Dar es Salaam Stock Exchange (DSE) has posted outstanding performance in 12 months time with its market capitalisation more than doubling to record 12.95tri/- compared to 6.09tri/- in October last year.

According to the DSE market report, domestic market capitalisation jumped to 2.71tri/- compared to 2.30tri/- realised in October 2011.

During the year, the market report shows further that the DSE All Share Index increased to 1,457.84 points from 1,303.69 points in October last year.

The Tanzania Share Index (TSI) surged to 1,291.57 points compared to only 1,142.61 points recorded in the corresponding period last year.

The outstanding performance of the bourse indexes is attributed to the increase of share prices for Swissport which is about to triple to 1460/- up from only around 700/- in October last year.

Furthermore, the outstanding performance is attributed to the issuance of the Tanzania Breweries Limited (TBL) and Precision Air Services (PAL) Initial Public Offerings (IPO) early this year. 

The bourse is expected to receive further boost this fiscal year with the listing of three more firms bringing the number to 20 trading at the market.

The DSE Chief Executive Officer, Mr Gabriel Kitua said recently in an interview that the new listings will further stimulate trading at the market. 

“Obviously, the increased number of listed companies will make the bourse more active and one of the fastest growing markets in the region despite being small,” he said.

Also the establishment of the Enterprise Growth Market (EGM) will have significant impact onto the market operations.  DSE has already received prospectus of the London-listed Richland Resources, the parent company of TanzaniteOne that seeks to offload a 20 per cent stake during a cross-listing on DSE.

Mr Kitua said the bourse forecasts strong interest from investors on Richland’s shares. Also in the list would be a gas company whose name is yet to be disclosed but it is expected to issue new shares despite being listed at the London Stock Exchange to mobilise funds for the exploration of gas in Southern Tanzania.

In November last year, the East African Breweries Limited (EABL) disposed 20 per cent stake in TBL that was oversubscribed for over 200 per cent, with 297bn/- offered.

About 58,095,693 EABL shares in TBL offloaded pegged at 2,060/- per stock,” states the report. However, PAL managed to raise only 11.84bn/- from a total of 6,667 investors who took part in the IPO.

Source: The Daily News, http://www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam

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