DAR ES SALAAM Stock Exchange (DSE) turnover has increased by almost seven times in this year’s first quarter compared to the similar one last year, thanks to capital account liberalisation.
The first quarter market liquidity of 278bn/- is close to the full year turnover of 360bn/- the market traded in 2014. The 2013 quarterone turnover was 42bn/-.
The DSE Chief Executive Officer (CEO), Mr Moremi Marwa, said this year first quarter was “a very successful quarter” thus elevating the bourse’s rank as one of the exchanges in Africa that delivers high returns.
“Wealth enhancement (as measured by increase in market investment value) and liquidity levels, as measured by market turnover, increased at relatively significant levels,” Mr Marwa said.
The bourse for the seventh consecutive quarters is ranked as one ofDSE on its first quarter performance statement shows that liquidity (turnover) increased almost two-folds or 93 per cent - from 144bn/- fourth quarter in 2014 to 278bn/- in this year’s first quarter.
The valuation levels have also increased in the quarter, from the trailing market Price Earnings Ratio (PER) of 16.50 times as of close of month end December 2014 to the trailing PER of 17.98 times as of end of March.
“The DSE’s market PER is on similar levels as others in the region,” the CEO said. Orbit Securities General Manager, Mr Juventus Simon, said the exchange good performance was the outcome of capital account liberalisation that has increased investors’ participation since May, last year.
“The trading volume increase is the reflection of (partial) capital account opening, the move increases the traders’ spectrum in the region,” Mr Simon said.
As for the bonds market segment there was also a significant increase in the first quarter. The bonds trading turnover reached 167bn/-, on face value, compared to just 30bn/- the previous quarter.
But despite the achievement, in most measures, for instance, investors’ returns, liquidity, increased efficiency and public/investors education, DSE said much is still demanded from them in 2015.
“Our top priority is to introduce mobile and internet trading in our platform, encourage more listings, public education and awareness creation and demutualisation of DSE,” Mr Marwa said.
