The wealth of domestic investors of listed companies has gone up by almost 28 per cent in the last six months, Dar es Salaam Stock Exchange (DSE) Chief Executive Officer, Mr Moremi Marwa has said.
Trading at Dar es Salaam Stock Exchange
This as measured by the Tanzania Share Index (TSI) index—which tracks domestic listed companies—shareholders wealth in domestic listed companies has increased on average by 27.75 per cent since January to date.
He told the ‘Daily News’ in an interview that the percentage increase was equivalent to 1.084tr/- as of the domestic market capitalisation. “This trend and performance is mainly a result of good fundamental performance in terms of revenue and profitability,” Mr Marwa said.
The wealth increase came after domestic caps grew from 2.823tr/- in January to 3.907tr/- at the end of June. The listed companies that recorded significant growth in terms of market capitalisation, during the first half of the year are CRDB, TCC, TaTePa, NMB, Swissport and TBL recorded a year to date growth per cent in brackets of (92.85), (54.76), (50.00), (44.64), (17.44) and (7.33) respectively.
“This is coupled by consistent maintenance of dividends policies by most counters,” he said. According to him, the growth was also cemented further by good macroeconomic parameters and prospects and the positive market sentiment in general.
The Orbit Securities, Head of Dealings and Operations, Mr Juventus Simon, said the value of shares had gone handsomely inthe last six months. “The portfolio investment surged up good,” Mr Simon said, adding “the return on investment in the last six months paid handsomely.”
Mr Simon said the trend showed that both—retail foreign and local investors— were confident with the growth performance but for the local it shows increased culture of savings.
During the same period, market turnover—value of shares transacted—was 45bn/- compared to 28bn/- recorded from July to December 2012. DSE said the same trend expected to hold as liquidity in the economy increases, inflation and interest rate slow down and positive sentiments and market confidence is enhanced.
