Budget shows little impact on Dar bourse

The 2012/13 budget read in Parliament last week appears to have little ripple effect on trading at the Dar es Salaam Stock Exchange (DSE) speech so far due to the small number listed companies, a stock broker has said.

The Tanzania Securities Chief Executive Officer (CEO) Mr Moremi Marwa said the bourse was yet to exhibit the impact on its trading as a result of the budget due to small number of listed companies.

“So far, we haven’t see major issues in the budget that may affect the Dar es Salaam Stock Exchange,” Mr Marwa said over the weekend. “Let’s wait until the bill is debated in the house to shed light on further developments,” the CEO added.

According to the Tanzania Securities weekly report, dealers expect the market to maintain moderate to high activity levels toward the end of this financial year.

“Looking ahead therefore, we continue to expect a moderate to high activity levels … as sustaining forces of institutional investors continue to hold the market afloat during the current period,” the report shows.

Last week the bourse indices gained slightly, whereby the Tanzania Share Index (TSI) gained 0.66 per cent to end the week at 1,178.06 points and All Share Index (DSEI) gained 0.14 per cent to settle at 1,312.17 points.

Overall, the market’s performance was pushed up by NMB share gain of 2.2 per cent to close the week at 920/- and CRDB 4.4 per cent gains to settle at 118/- a share.  Week-on-week turnover climbed 106 per cent to 602m/- from last week’s turnover of 292m/-.

However, overall activity levels slowed down 1.77 per cent to 1,222,420 shares – a slight week-on-week drop from last week’s performance of 1,244,317 shares traded.  The banking sector was very active and liquid than the commercial and industrial windows.

Foreign investors bought 58m/- worth of NMB shares during the week ending last Friday. The Industrial and Allied (IA) index added 0.73 points to end the week at 1,426.95 points. The (BI) Banking, Finance and Investment index also gained 19 points to end the week at 947.01 points, the report shows.
Source: The Daily News,http://www.dailynews.co.tz , reported by Abduel Elinaza
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