Tanzania: DSE Doubles Yearly Profit

DAR ES SALAAM Salaam Stock Exchange (DSE) net profit has doubled on a year basis, thanks to quarter three's once-off pre-arranged deal from Vodacom.

The Dar exchange financial report showed that net profit increased 118 per cent to 3.65bn/-at the end

of last year from 1.67bn/-attained in previous year.

Tanzania Securities Limited (TSL) said on Tuesday that operationally, 2019 was a calm year for the bourse signified by the quarter-four performance compared to similar periods in 2018.

"We remain positive on the company's 2019 annual results and performance for 2020," Tanzania Securities said in its commentary on DSE Q4 2019 results. However, despite year-onyear good results, DSE stock price declined 8.0 per cent to 980/- from 1,060/-recorded, Tuesday.

Nevertheless, Earnings per Share (EPS) also more than doubled to 153/-at the end of last year from 70/-recorded at 2018 due to better results.

"The DSE balance sheet," Tanzania Securities said, "remained sound, registering a 10 per cent growth in total assets December 2018 and 2019".

The brokerage firm said in last year Q3 the bourse better performance was mainly due to the once-off pre-arranged deal for the acquisition of 588,000,070 Vodacom Tanzania shares by Vodacom Group of South Africa that increased DSE's transaction fees to 1.58bn/-and total turnover to 526.91bn/-.

On quarterly basis, DSE in Q4 recorded a sharp decline in revenue by 54 per cent to 1.86bn/- from 4.04bn/-realized in Q3 that ended last September.

Key contributors to the Q4 revenue decline, compared to Q3, included transaction fees dropped by 90 per cent to 157m/-from 1.58bn/-, and registry and CSD fees decreased by 69 per cent from 611m/-to 278m/-.

The Stock Exchange recorded a 16 per cent decreased in total expenses from 1.47bn/-in Q3 to 1.23bn/-in Q4.

During the quarter under review, a total of 115,397,225 shares were transacted in Q4 from 639,887,517 shares in previous quarter. Market liquidity fell by 94 per cent to 33.33bn/-from 526.91bn/- turnover.

In comparison to Q2 liquidity improved by 26 per cent from 26.37bn/-. DSE is the second bourse in East African bloc to self-list after Kenya's Nairobi Securities Exchange. Only two exchanges in EAC are self-listed.