DSE Q3 performance dips ahead of elections

Dar es Salaam. Performance of the Dar es Salaam Stock Exchange PLC (DSE) declined in the last three months with analysts associating the trend with the coming General Eection on October 25.

The value of all the listed shares which is also called market capitalisation declined by 7 per cent in the last three months from Sh23.9 trillion as of June 30, 2015 to Sh22.2 trillion at the close of the quarter, on September 30, 2015, according to DSE’s CEO Quarterly Note.

The domestic market capitalisation decreased by 1 per cent from Sh9.9 trillion to Sh9.8 trillion in the same period while turnover declined from Sh278 billion to Sh222 billion.

“In most cases, July through September is the peak period for shares to gain as well as trading. This year the situation is different because of the fears created among investors by the General Election,” said Raphael Masumbuko, chief executive officer of Zan Securities.

“Some investors have been reluctant to sell or buy shares and as a result, the prices were pulled down. This affects both liquidity and the market capitalisation,” he added. DSE listed companies’ valuations and trading activities were partly affected by the depreciation of the shilling compared to the US dollar, DSE Chief executive Mr Moremi Marwa, said in the statement.

“This had a negative impact on investors’ returns (as measured in US$). As a result, foreign investors’ activities on the buy-side remained the same as it was in the second quarter at 86 per cent. The sale-side activities declined from 41 per cent to 8 per cent this quarter,” he added

At least three listings are expected before the end of the year. They include Mwalimu Commercial Bank, Mufindi Community Bank and YETU Microfinance.

DSE introduced recently the mobile trading platform in its Automated Trading and Central Securities Depository infrastructure to enable investors to buy and sell listed shares using their mobile phones.

About 700 investors had already accessed the infrastructure using their mobile phones in one month since the launch.