DSE ends first quarter in ‘brisk trot’

The Dar es Salaam Stock Exchange (DSE) has ended the first quarter on a higher key after its indices appreciated well, reflecting good performance by most of the listed companies.

Tanzania Share Index (TSI), according to Tanzania Securities analysis, gained 10.22 per cent in the first quarter of this year to reach 1,576.76 point, being the all time highest bullish performance.

DSEI gained 2.31 per cent to 1520.24. The bourse bullish trend is also attributed to foreign investors whose presence influence the market’s indices northwardly, since most are seeing stocks as being undervalued.

Orbit Securities Head of Operations and Dealings Juventus Simon said normally DSE in the first quarter equities prices drop because it is clouded with a number of family and firms financial obligations. 

“But thanks to foreign investors, mostly corporate, have shown a good appetite for the stocks, especially on banking sector,” Mr Simon told the ‘Daily News’ over the weekend.

He said almost all listed companies from TCC, TBL, NMB Bank to CRDB Bank share prices have appreciated handsomely to woo portfolio investors in the first quarter. 

“We have now seen that even CRDB stocks are stable and climbing up steadily,” Mr Simon said.

CRDB share price climbed by 2/- to 162/- on Thursday. The bourse rallying trend has puzzled even brokers as shares continue to gain, despite some sliding slightly and regain accordingly. 

During the first quarter stocks are trading on high demand against the normal glut.

Previously, the Zan Securities Chief Executive Officer, Mr Raphael Masumbuko, said psychologically in January share prices are down and is the best buy month but that was not so this year. 

“I think DSE awareness is high this time around than ever before, despite a low turnover to be low,” Mr Masumbuko told the ‘Daily News’ recently.

“Politicians will say the economy has grown so people are out buying more, but I think it is consumers’ preference as other money market yield rates are still down,” Zan’s CEO said.

Another broker, Mr Moremi Marwa, the CEO of Tanzania Securities, said this follows people understanding more about the benefits of the ‘assets class’ (stocks) supported by media, some brokers’ analysts and in-depth researches.

“Also good fundamental performances by significant number of companies listed on the exchange, coupled by fine and promising macro economic outlook, makes investors maintain bullish market sentiments - hence more demand and increased prices,” Mr Marwa said recently.

Given the number of firms listed and cross-listed on DSE, as the bourse turned 15 years, there are only 17 companies. On average about one and half company is listed a year.

Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza

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