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CMSA: Contribution of capital markets to GDP hits pct mark

30th January 2013
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Capital-Markets-and-Securities-Authority

Contribution of the country’s capital market to the GDP has now reached 6 percent up from 2 percent recorded two years ago, the Capital Markets and Securities Authority (CMSA) has said.

 Speaking in Dar es Salaam recently, CMSA chief Executive Officer Nasima Massinda, said the increase resulted from the rise in the number of market players in the industry.
She said the number of investors in the stock market increased from 172,806 in 2010 to 180,108 in 2012.
 
According to the DSE, key equities market indicators, domestic market capitalisation jumped to 2.48trn/- in the period under review compared to 1.62trn/- realised in 2010.
During the year, the market report demonstrates further that the DSE All Share Index increased to 1,491,370,000,000 points from 1,298,280,000,000 points in January last year.
 
The Tanzania Share Index (TSI) surged to 1,454,720,000,000 points compared to 1,119,320,000,000 points recorded in the corresponding period last year, according to the index.
 
The outstanding performances of the bourse indexes is attributed to the increase in share prices of different listed firms like Swissport which is currently standing at 1,720/- up compared to about 650/- recorded in the corresponding period.
 
Companies such as Tanzania Breweries Limited (TBL), Tanzania Cigarette Company (TCC) and National Microfinance Bank (NMB) continued to perform well in the market. 
 
During the period, local investors participated actively in the market managing to carry out deals worth 97.8bn/- compared to 89.23bn/- raised between January and March 2012, according to the index.
 
Foreign investors injected 2.22bn/- by January this year compared to 10.77bn/- mobilised between January and March 2012.
 
In 2011 DSE had only 14 listed firms with a total market capitalisation of USD3.37bn, 79 treasury bonds with outstanding amount of USD957.4m and six corporate bonds with outstanding amount of USD64.9m.
 
The listed firms include CRDB Bank, DCB Commercial Bank, East African Breweries Limited (EABL), Jubilee Holdings Limited (JHL), Kenya Airways (KA) and KCB Group.
Others are Nation Media Group, National Microfinance Bank (NMB), Swissport Tanzania Limited (Swissport) and Tanga Cement Company Limited (Simba).
 
In the list there is also Tanzania Breweries Limited (TBL), Tanzania Cigarette Company (TCC), Tanzania Portland Cement Company (Twiga) and Tanzania Tea Packers (Tatepa).
EABL, KA, Nation Group, JHL are also cross-listed firms on the Uganda Securities Exchange (USE) and Nairobi Stock Exchange (NSE).
SOURCE: THE GUARDIAN