Monday, May 31, 2021

Dar es Salaam bourse market cap up after gains on 3 counters

DSE pic
By Josephine Christopher

Dar es Salaam. The market capitalisation at the Dar es Salaam Stock Exchange (DSE) rose by Sh478.6 billion last week despite a slowdown in turnover growth due to lower participation of foreign investors, market data shows.

The rise in market capitalisation last week wa largely fuelled by gains on three counters.

Shares for CRDB Bank Plc and Nicol gained 5.56 percent and 4.88 percent to close at Sh285 and Sh215 per share, respectively, while the self-listed DSE gained 1.69 percent to close at Sh1, 200.

Market capitalisation at the DSE closed last week at Sh16.27 trillion, which was Sh478.6 billion or three percent higher than the preceding week.

“Share appreciation on these counters as well as cross-listed companies has resulted in the increase in market capitalization which translates into enhancement of investor’s wealth,” DSE chief executive officer Moremi Marwa said yesterday.

Turnover growth

A slowdown in turnover growth is primarily due to lower participation of foreign investors due to the existing global Covid-19 worries.

Mr Marwa said there had been an upsurge in domestic investors investing in government securities which have maturities of 25 years, 20 years, 15 years and 10 years.

On last week’s trade, domestic market capitalisation also increased slightly by 0.39 percent to Sh9.51 trillion from Sh9.48 trillion of the preceding week according to a brokerage firm Vertex international Securities Ltd.

 

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