Tanzania: Political tension hits trade at Dar bourse

The shilling depreciation and political issues ahead of general election seem to slow down trading at Dar es Salaam Stock Exchange (DSE), which dropped to 43 per cent last week.

The week on week turnover recordings decreased by 43 per cent to 2.08bn/- from 14.69bn/-, which is being linked to tension during the nomination of the ruling party's candidate for presidency.

On other hand, foreign investors are said to hold their stocks as a result of shilling's depreciation from quick recovery to nearly 1,900/- against a US dollar early this month to close yesterday trading at 2200/-.

DSE Manager-Projects and Business Development, Mr Patrick Mususa, said trading was affected by shilling's sliding as foreign investors held their stocks to influence turnover movements.

"Investors are now watching (closely) the political trend in the country," Mr Mususa said yesterday during a media briefing refereeing to the coming general election.

He added: "The more impact, however, is seen on shilling depreciation." The number of shares traded also decreased by 89.17 per cent, the total number of shares traded were 778,900 compared to shares traded the previous week's over 7.1 million.

The week's busiest counter was CRDB Bank. The bank accounted to 80.44 per cent of total number of shares transacted, whereas Tanzania Cigarette Company (TCC) and Tanzania Breweries Limited (TBL) counters accounted to 7.39 per cent and 6.39 per cent respectively.

The Industrial and Allied (IA) sector contributed the highest proportion of turnover for the week, 82.69 per cent of total turnover. Transactions were mainly carried out on TBL counter, 45.68 per cent of the total turnover.

The banking sector accounted to 15.61 per cent of the total turnover, CRDB Bank was the main contributor in the sector, 12.07 per cent of the total turnover.

While the Commercial Services sector contributed 1.65 per cent of the total turnover with most transactions carried out on Swissport counter.

Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania

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