DSE mulls internet trading debut on platform

DSE mulls internet trading debut on platform

DSE mulls to introduce mobile, internet trading on platform. In a move aimed at incorporating more people in capital market industry, the Dar es Salaam Stock Exchange (DSE) is contemplating to introduce mobile and internet trading in its platform. (File photo)

In a move aimed at incorporating more people in capital market industry, the Dar es Salaam Stock Exchange (DSE) is contemplating to introduce mobile and internet trading in its platform, ‘The Guardian’ has learnt.

 

According to Exchange’s Chief Executive Officer Moremi Marwa, the exchange has outlined priorities to be undertaken before the end of this year.

 

“Our top priority is to introduce mobile and internet trading in our platform, encourage more listings, public education and awareness creation, integrating and synchronizing our Central Securities Depository (CSD) to that of Bank of Bank of Tanzania for government bonds trading and demutualization of DSE”, he said .

 

He said in the CEO’s quarterly note that despite the positive performance in most measures which are investors’ returns, liquidity, increased efficiency and public/investors education; they understand that much is still demanded from them in 2015. 

 

“We thank all DSE stakeholders for accompanying us in our strategic journey of enhancing the quality of our products and services,” he said.

 

Explaining further, he said for the DSE, 1st Quarter (Q1) of 2015 was a very successful quarter. 

 

Once again for the seventh consecutive quarter, exchange was ranked as one of the Exchanges in Africa that delivers high returns to investors on its listed stocks. 

 

Wealth enhancement (as measured by increase in market investment value) and liquidity levels, as measured by market turnover, or volume of transactions, increased at relatively significant levels.

 

Domestic market capitalisation and indices (which covers the 14 local listed companies) increased by 3 percent compared to the loss of10 percent in the previous quarter (October-December 2014). 

 

Market capitalisation and indices (covering all 21 listed companies) also increased by 3 percent. Year-on-year (y-on-y) growth in domestic market capitalisation and indices was at 64 percent and 36 percent for the total market capitalization and indices.

 

The domestic market capitalisation increased from 9.9trn/- as of end of December to 10.2trn/- as of 31st March 2015. 

 

The total market capitalisation also increased from 22.3trn/- as end of December 2014 to 22.7trn/- as of end of March 2015. 

 

The relatively better performance of the total market indices and total market capitalisation, was a result of good fundamental performance of the underlying companies, relatively good dividend payments and positive sentiments and outlook by investors.

 

Liquidity (turnover) increased almost two-folds (i.e. 93 percent) – from 144bn/- in the previous quarter (Q4, 2014), to 278bn/- Q1, 2015. On the y-on-y basis, this quarter’s turnover was almost 7 times compared to Q1, 2014, where turnover was 42bn/-. 

 

Valuation levels have also increased in the quarter, from the trailing Market Price Earning Ratio (PER) of 16.50 times as of close of month end December 2014 to the trailing PER of 17.98 times as of end of March. The DSE’s market PER is on similar levels as others in the region. 

 

As for the bonds market segment – there was also a significant increase in the quarter: bonds trading turnover reached 167bn/- -- face value, (cost of 136bn/-), compared to just 30bn/- the previous quarter. 

 

Despite the positive performance in most measures: i.e. investors’ returns, liquidity, increased efficiency and public/investors education; we understand that much is still demanded from us in 2015.