DSE shareholders approve 2.4bn/- dividends for 2022

21May 2022
By Guardian Reporter
Dar es Salaam
The Guardian
DSE shareholders approve 2.4bn/- dividends for 2022

THE Dar es Salaam Stock Exchange (DSE) shareholders have approved 2.4bn/- dividends for 2022, which is equivalent to 100.78/- per share.

DSE Chief Executive Officer Moremi Marwa.

The amount declared is also equivalent to 60 per cent of net profit generated during the year ending December 2021, as it was approved during the company Annual General Meeting held on May 18, this year in Dar es Salaam.

Trading of shares cum dividend started on May 18 to June 17 this year while trading ex-dividend will start on June 18 onwards, says the company statement published yesterday.

According to the DSE group annual report 2021, total income decreased by 13 percent from the revenue of 10.05bn/- in 2020 to 8.77bn/- in 2021. The profit before tax decreased marginally to 4.04bn/- compared to a profit before tax of 4.81bn/- in 2021.

Despite of the decline in the earnings in year 2021, the result say, the DSE group still managed to record strong financial performance due to management efforts and initiatives to diversify its revenue base and allocating expenses in a cost-conscious manner, coupled with efficient management of its investment portfolio and improvement in bond trading.

Following continued good performance, the DSE share price increased by 48 percent during year 2021, from 880/- in December 2020 to 1,300/- per share in December 2021.

This resulted into an increase in shareholders’ book value of 10bn/-, from the market capitalization of 21bn/- in 2020 to a market capitalization of 31bn/- in 2021.

The recent DSE market report shows the company share closed at 1,900/- on Thursday this week.

“In 2022 the DSE shall continue the overall delivery of the 2018 – 2022 Strategic Plan II which is embedded in the overall DSE objective of “providing a responsive securities exchange that promotes economic development through offering a range of attractive and cost-effective products and services,” reads parts of the annual report quoting the chief executive officer Moremi Marwa.

Specifically, Marwa says in year 2022, the DSE group say is focusing on implementing  DSE Revised Rules, 2022; Provide enabling environment for listing of sustainable themed/labelled financial instruments; Pursue liquidity enhancement of both equity and debt market segments.

Other focuses are preparing the DSE Five year strategic Plan III (2023-2027); Enhance diversity of CSR Products and services; Ensure enhanced compliance and risk management process; and enhance efficient utilization of DSE financial human and other resources.

During the year 2021, the total asset of the DSE Group grew to 29.1bn/- from 28.4bn/-, the growth of 3 percent, the increase was due to the increase in the investment in the government securities from the funds obtained from the operations.

Price earnings ratio increased from 4.5 in year 2020 to 7.8 in year 2021, the increase was mainly due to increase in the market price, this led to the value of DSE Group to increase by 10bn/- in 2021 compared to 2020.

During the year, the group had positive cash flow generated from the operating activities of 2.5bn/-  (2020: 1.28bn/-), this was attributed by the funds collected from the outstanding receivables with customers.

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