Dar Exchange ends 2017 in bullish rally

DAILY NEWS Reporter

DAR ES SALAAM Stock Exchange (DSE) ended 2017 posting a 6.6 per cent gain at 3,919.25 as tracked by domestic listed stocks index (TSI) compared to 3,677.82 posted on January 2017.

According to weekly financial markets synopsis, the Industrial and Allied sector of the listed stocks gained the most, returning 18 per cent to close the year at 5,504.27 compared to beginning of the year figure of 4,665.14.

This sector is made up of the Tanzania Breweries Limited (TBL) and Tanzania Cigarette Company (TCC) lifting the overall index sector despite underperformance of the Cement companies. On the other hand, Banks, Finance and Investments and Commercial Services sectors lost 10.9 per cent and 22.0 per cent of their index values respectively. They closed the year at 2,460.99 and 2,462.24 versus opening index values of 2,761.26 and 3,157.95 respectively.

The overall Index (Allshare Index – DSEI) posted 8.7 per cent gain to end the year at 2,389.11 versus year opening value of 2,198.40. Banks stocks performance was weighed down by continue provisioning for bad loans, with non-performing loans (NPLs) rates continuing to worsen at each reporting period during the year.

However, the NPLs situation might not be as bad given the fact that credit to the private sector is not growing hence NPL is computed on the same stock of gross loans. The short last trading week of 2017 saw the market unchanged across all domestic listed stocks counters, moving shares worth only 381.23m/-.

This is a 93 per cent fall in trading activities comparing to the preceding week’s 5.72bn/-. The overall, 2017 posted improved trading activities with shares worth 516bn/-changing hands against 2016’s 426bn/- where foreign investors continue to dominate over 90 per cent of trading activities, according to DSE market reports.

The year 2017 saw the bourse listing the first Telecommunication Company, Vodacom Tanzania setting the record of being the highest ever initial public offer (IPO) in DSE history.

Vodacom, with an extended IPO selling window, managed to raise 476bn/- from local and foreign investors, followed by subsequent listing on August 15, 2017 in compliance with The Electronic and Postal Communication Act 2010 requiring telecommunication licensees to offer at least 25 per cent of their issued capital to the public and list on the Exchange.