Africa-Press – Tanzania. DAR ES SALAAM Stock Exchange (DSE) domestic market capitalisation has increased by 4.0 per cent in this year quarter two thanks to increase of price of four counters.
The market capitalisation for 22 domestic listed companies rose by 370.82bn/- to 9.62tri/- from 9.24tri/- in quarter one of this year.
This increase, according to DSE Chief Executive Officer Quarterly Note, was led by Twiga Cement share price that went up 44 per cent to 3,600/-followed by CRDB Bank up by 28 per cent to 295/- then NICOL up by 22 per cent to 225/- and lastly DSE up by 18 per cent to 1,300/- .
The bourse CEO, Mr Moremi Marwa, said in the Note that the four counters price increase was enough to offset the decrease in the other two counters.
“The significant increase in prices of the counters added more to the total domestic market capitalisation proportionately to the decrease in prices on these two counters – hence the notable increase in domestic market capitalisation during the quarter,” Mr Marwa said.
In the second quarter two counters saw decreases in prices namely Jatu that plunged by 29 per cent to 1,200/- and DCB Bank down 9 per cent to 240/-. For the remaining 15 domestic listed companies’ share prices remained unchanged during the quarter under review.
Also, the equity market turnover increased during the quarter compared to both the quarter ended last June, and March this year.
Equity trading turnover increased from 23.3bn/- to 29.5bn/- which was higher than the 13.6bn/- recorded in Q2, last year. Companies that led in liquidity creation were Twiga, NMB Bank, CRDB, Vodacom, TBL and DSE.
“Other counters with minimal trades during the quarter were Jatu, Nicol, and Swissport,” Mr Marwa said.
On valuation, the weighted average market Price Earnings (PE) Ratio for domestic listed companies was trailing at 22.97 times in Q2, which was slightly lower than PER of 23.45 times as of the Q1.
“This decrease was attributed to the increase in prices relative to the reported earnings during the quarter,” Mr Marwa said. The trailing weighted average dividend yield (DY) increased to 4.2 per cent compared to the 3.8 per cent that was reported at the end of March.
Also, the total market capitalization which covers all 28 listed equity securities recorded an increase of 7.5 per cent at the end of Q2 compared to Q1. The total market cap increased by 1.156tri/- from 15.358tri/- at the end of Q1 to 16.514tri/- at the end of Q2.
This follows the increases in prices of all cross-listed companies (NMG up by 49%, JHL up by 32%, EABL up by 20% and KCB up by 6%) and some of the domestic companies.
