DSE capitalisation jumps to 20trn/-, says management

By The guardian reporter

DSE chief Executive Officer, Moremi Marwa

Total market capitalisation at the Dar es Salaam Stock Exchange (DSE) has now reached 20.7trn/- from 14trn/- recorded last year, the management has said.

 

This was said recently in Bagamoyo, by the DSE chief Executive Officer Moremi Marwa during a seminar which was organised for senior business news reporters.

 

The seminar was organised by DSE in collaboration with the Association of Chartered Certified Accountants (ACCA), to strengthen capacity of business news writers to produce informed, more knowledgeable and accurate information about the stock markets news. 

 

He said the domestic market capitalisation stood at 8.5trn/- up from 3trn/- recorded last year.

 

Marwa also said the contribution of stock market in the Gross Domestic Products now stands at 39 percent. 

 

At the moment, the bourse has listed 18 companies of which six are cross listed, while there are several government bonds outstanding worth USD2.5bn.

Explaining further, he said stock market is an important part of the financial system and economy since it facilitates growth of industry, commerce and investment.

 

He said the stock market provides key forms of capital needed to achieve sustainable productive investments in enterprises.

 

It is used as barometer of different economic activities and sectors of the economy and provides risk management tools through tradable derivative.

According to him, the stock market creates investment opportunities and alternatives for individuals and institutions.

 

He noted that it provides a price discovery, investment valuations mechanism and enables implementation of various economic policies such as privatisation and wider economic ownership.

 

DSE was established n 1998 as a response to economic reforms that included liberalisation of financial markets, privatisation of parastatals and provision of long term capital raising for private enterprises.

 

However, only seven out of more than 300 companies have been privatised through listing which enabled them to become more efficient.

Marwa urged media to report accurately on information related to stock exchange, policies and fiscal incentives.

 

“You have to strive to understand the relationship between different economic activities in the economy and the capital market,” he said.

He also asked them to question, influence and motivate discussions, dialogue and political willingness to implement policies and laws that support growth of local capital market.

 

The one day seminar which was opened by the acting Secretary General of Media Council of Tanzania Mireny John attracted over 30 scribblers from Dar es Salaam and Zanzibar.

SOURCE: THE GUARDIAN