Dar bourse expects hefty profit in 2017

DAILY NEWS Reporter

DAR ES SALAAM Stock Exchange (DSE) is expecting a hefty profit next year as the performance and activities of the bourse continues to increase.

The bourse currently wants to raise 7.5bn/- through initial public offer, and the projections suggest the profit will cross 2.0bn/- mark next year. DSE Chief Executive Officer, Moremi Marwa, told the ‘Daily News’ that the projections of the remaining nine months of this year suggest a profit of 1.4bn/-.

“We anticipate a profit rise next year… since prospects are good,” Mr Marwa said, without mentioning the actual estimated profit figure. DSE, in 2014/15, posted a profit of 1.94bn/-, while from July 2015 to March 2016 the bourse registered a net income of 1.74bn/- and revenue was 3.41bn/-.

From March to December this year DSE assets are projected to grow by 130 per cent from 6.9bn/- recorded at end March to 15.9bn/- to December.

The bourse, walking toward self-listing by July, changed its financial calendar from July to June to January to December after listing. The exchange offered 15 million shares to public at 500 each which went on sale last week.

The primary offer, among other things, transformed the bourse to a company guarantee by shares instead of trustees.

The DSE has mainly three business segments namely listing fees, transaction fees and other Stock Exchange related services. In the first nine months -- July 2015/March 2016 -- the bourse generated 3.4bn/- compared to 4.1bn/- of 2014/15 from its three segments.

In the near future the bourse envisages introducing five new business products in collaboration with Capital Markets and Securities Authority (CMSA).

The products, both for capital raising and for risk management purposes, are Real Estate Investment Trust, futures and derivative, Exchange Traded Funds (ETFs), closed ended collective investment schemes and municipal bonds.

Currently, DSE earnings per share stands at 135/- and net asset value is 228/-. DSE was established by CMSA and incorporated on September 1996.

The exchange became operational in April 1998 with TOL Gas Limited listing as the first company followed by TBL. Mid last year the bourse re-registered to become a public limited company