DAR ES SALAAM Stock Exchange (DSE) has registered a negative performance return in adjusted dollar term in this year’s third quarter due to dropping of share earnings.
The bourse, based by its DSE all share Index (DSEI) performance in US Dollar adjusted returns, registered a negative 5.0 per cent earnings.
According to DSE Quarterly Update, other exchanges in East Africa posted positive results — led by Nairobi Securities Exchange (NSE) that posted a 7.0 per cent return, Rwanda Stock Exchange (RSE) 4.0 per cent and Uganda Securities Exchange (USE) 3.0 per cent.
DSE Chief Executive Officer Moremi Marwa said in a note that despite bourse liquidity and index to increase during the period share earnings dropping had its toll on overall returns.
“(The) weighted average market Price Earnings (PE) Ratio for domestic listed companies was trailing at 13.67 times trailing of 15.91 times as of June 2017. “The trailing weighted average dividend yield was 4.3 per cent compared to 5.4 per cent recorded in the previous quarter,” Mr Marwa said yesterday.
The total domestic market capitalization increased by 26 per cent to close the quarter at 9.74tri/- from 7.75tri/- at end of June. “This,” Mr Marwa said “was largely a result of listing of Vodacom Tanzania coupled with the increase in prices on some counters, mainly the DSE and Swissport counters”.
These two factors, on the other hand, compensated for the decrease in prices on Twiga Cement by 16 per cent, Simba which lost by 15 per cent, TOL by 2.0 per cent, as well as TBL, DCB Bank and Mkombozi Bank whose prices declined by 1.0 per cent each, to result into the net increase in market capitalization and indices.
Market liquidity also recorded a moderate increase during the quarter. Trading turnover increased by 11 per cent, from transaction value of 117bn/- in the previous Q2, this year to transactions value worth 129bn/- in Q3.
Regionally, in the last nine months DSE also registered a negative return of 5.0 per cent followed by RSE with negative 1.0 per cent. NSE was registered the highest returns of 20 per cent and USE 17 per cent.