Dar bourse recovers from Christmas hangover

The Dar es Salaam Stock Exchange (DSE) trading bounced back to normal after long end-year holidays that saw the bourse clutching to bearish mode.

The bourse closed the last week after turnover appreciating by over 140 per cent to 6.19bn/-, the highest amount since the beginning of the year.

The Tanzania Securities, Research and Bonds Trading, Ms Upendo Lyatuu, said the bourse registered slight improvement in turnover on weekly basis.

“We envisage seeing a recovery situation in few weeks to come,” Ms Lyatuu said in a weekly comment report.

Similarly, she said, activity level increased by 33.4 per cent to 3,994,660 shares from 2,660,310 shares transacted in the previous week.

Zan Securities Chief Executive Officer Raphael Masumbuko said though the bourse turnover increased the stock prices was yet to pick up, but a bull-run mode promising.

“Yes, after the long holidays trading volume is climbing up, which (in long run) will assist to push prices to normal level as are still low,” Mr Masumbuko said.

The low equity prices, according to Mr Masumbuko, open an opportunity to invest at the Dar bourse which, currently, attracts attention of international investors.

“This signifying good business ahead, since the bourse awareness in increasing for both domestic and foreign investors,” the CEO said.

Tanzania all share index (TSI) closed the week in red pulled down by NMB and Swissport counters both lost 50/- to 2,450/- and 7,300/- respectively. The counter lost 0.69 per cent to settle at 4,447.49 points.

The Banking segment Index weakened to settle at 2,984.65 points amid a loss on NMB counter, while the Industrial & Allied Index fell to 5,930.98 points from last week’s 5,964.05 points or sunk by 0.56 per cent due to the loss on Swissport and TCC counters.

On other hand, the DSE all share index (DSEI) gained 3.3 per cent to close at 2,414.94 points.
The DSE top priorities in this year’s first quarter include encouraging more listings, public education and awareness.

Also, the demutualisation process which is now at the final stage, and the bourse have submitted its initial public offer (IPO) and self-listing application to the Regulator-Capital Market and Securities Authority.

The DSE envisage conducting the IPO and self listing before end of Q1, 2016 after getting approval from the Regulators.

Source: Daily News, reported from Dar es Salaam, Tanzania
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