THE weighted average price earnings (PE) ratio for domestic listed companies has gone up in three months ending June, despite registering a negative index performance.
The price for listed stocks, on Dar es Salaam Stock Exchange (DSE), was trailing at 22.67 times at end of June compared to 20.10 times as at end of March.
DSE Chief Executive Officer Moremi Marwa said the trailing was pushed up by price increases especially on the domestic listed stocks.
“This increase was significantly attributed to the increase in prices, especially for domestic listed counters relative to earnings,” Mr Marwa said in CEO’s Quarterly Note of three months to June.
He said the trailing increase on average attributed to four counters, of which two are major contributors to domestic market capitalisation basket.
“This was largely a result of increase in share prices for four counters, two of which being major contributors to the domestic market cap basket,” Mr Marwa said.
The companies that experienced prices surge were Tanzania Portland Cement Company (Twiga), DSE plc, TBL and TCC whose prices increased 11 per cent, 11 per cent, 6 per cent and 4 per cent respectively.
The bourse chief also said the trailing weighted average dividend yield remained at 3.8 per cent in Q2.
However, in the same quarter under review, the bourse all share index (DSEI) registered a negative increase of 19.50 per cent when computing in US dollar adjusted returns.
The results put DSE as one of the poor performer bourses in the East Africa on top of Rwanda Securities that also registered a negative 49.70 per cent on index drop in three months to June.
The best performer exchange in the bloc was Nairobi Securities Exchange (NSE) that posted a positive performance of 4.30 per cent.
The second from top was Uganda Securities Exchange (USE) which recorded an index drop of negative 10.90 per cent.