DSE equities, bonds and market capitalization appreciate in Q4 2020

13Jan 2021
The Guardian Reporter
Dar es Salaam
The Guardian
DSE equities, bonds and market capitalization appreciate in Q4 2020

OUTSTANDING listed bonds, domestic equity and market turnover (liquidity) all registered growth during the last quarter of last year but the bond segment slowed down.

Dar es Salaam Stock Exchange CEO, Moremi Marwa.

Dar es Salaam Stock Exchange CEO, Moremi Marwa said in Dar es Salaam on Monday while presenting the bourse’s performance for the year ending December 31, 2020 that cumulatively, the market size for the 22-domestic listed companies, as measured by market capitalization, increased slightly by 1.77 percent or 159.03bn/-.

Marwa said total domestic market capitalization also increased from 9.002trn/- in September 2020 to 9.161trn/- by December 2020. He further pointed out that the increase was a result of appreciation of CRDB Bank Plc’s shares whose prices rose by 30 percent; NICOL Plc by 12 percent; and Twiga Cement Plc by eight percent.

“The increase in domestic market capitalization was also boosted by the listing of new shares of Jatu Plc as well as Mucoba Plc following its acquisition by People’s Bank of Zanzibar to the tune of 75 percent,” he said.

Marwa further noted that the price increase involving the five counters on the total domestic market capitalization was proportionately higher compared to the decrease in prices on Simba and Tanga Cement Plc which was -17 percent; and SWISSPORT at -5 percent hence leading to the overall increase in domestic market capitalization.

The DSE CEO added that total market capitalization which covers all 28 listed equities also experienced a marginal decline of 0.36 percent during the period compared to the previous quarter of the year ended 30th September 2020.

Total market capitalization decreased by 54.37bn/- from 15.149trn/- to 15.094trn/- during the period. “This followed decreases in prices of some of the domestic and cross-listed companies,” he added.

He explained that the equity market liquidity and market turnover increased substantially during the quarter compared to the third quarter. Equity trading turnover increased 12.7 times compared to the transaction turnover in the quarter ended 30th September 2020, from 35.5bn/- to 443.67bn/-, mainly contributed by a one-off transaction on NMB Bank Plc’s counter worth 408bn/-. “Other companies that led in liquidity generation were: TBL, CRDB, TCC, TWIGA, DSE, NICOL and JATU,” he underlined.

During the period under review, weighted average market price earnings ratio for domestic listed companies was trailing at 21.00 times which was slightly lower than that the PE ratio’s 21.36 times as of September 2020....read more on https://epaper.ippmedia.com