DSE changes lift capitalisation

The Dar es Salaam Stock Exchange (DSE) new initiatives implemented mid this year have contributed to increased business volume and share demand at the bourse. 

DSE’s Chief Executive Officer, Mr Moremi Marwa (pictured) said on Monday that since July they have taken key initiatives that might have contributed to increased market capitalisation and indices.

The new changes include reducing the settlement cycle from five to three days on equities and from three to one day in the bonds market and extending trading hours from two to four.

Others are the introduction of Automated Trading System and the Central Depository System (CDS) in the Wide Area Network (WAN: “Where brokers can now trade remotely in their offices,” the CEO said.

As a result, market capitalisation ballooned by almost 20 per cent in the last five months to 16.36tri/- at the first day of November from 13.66tri/- of mid-May, this year.

Both indices, DSE all share Index (DSEI) and Tanzania Share Index (TSI) have continued to rise to 19.7 and 47.7 per cents to 1841.92 and 2442.40 points since May, this year respectively.

Mr Marwa said also allocation of the necessary resources in creating public awareness and educating the public on investing in listed equities and some of the potential investors are already ‘responding positively.’

However, the DSE chief said the new initiatives might be secondary factors. “The primary and fundamental factors are the good performance and future outlook of the underlying companies, sectors they are in and the economy at large,” Mr Marwa said.

Given the performance in the second and third quarters, the outlook for fourth quarter “is positive as we continue to witness positive investors’ sentiments on the operational and financial performance underlying companies and the economy” DSE said.

With the launching of the alternative market for small businesses today, dubbed Enterprise Growth Market (EGM), the future of capital market in the country looks bright.
Source: Daily News, reported from Dar es Salaam, Tanzania

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