THE market size of the Dar es Salaam Stock Exchange (DSE) local listed companies as measured by market capitalisation decreased by 164bn/- to 9.01tri/- compared in the fourth quarter last year compared to 9.17tri/- of the previous quarter.
The DSE Chief Executive Officer quarterly note shows that the market size decrease was largely on account of price decrease of four counters out of 21 listed companies during the reference period.
Counters that recorded price fall are namely DSE by 8 per cent, DCB (8 per cent), CRDB (5 per cent) and TBL (4 per cent).
The remaining 17 domestic listed companies’ share prices remained unchanged during the quarter under review.
On the other hand, the market liquidity also decreased significantly during the quarter by almost 15 folds to 34bn/- from transaction turnover value of 527bn/- transacted in the quarter ended September last year.
According to the report, the decrease is explained by a significant one off prearranged all or none block trade on the Vodacom counter that took place during Q3, 2019.
Furthermore, total market capitalisation decreased by 10 per cent 1.92tri/- to 17.10tri/- in the quarter under review from 19.06tri/- in the third quarter ended September last year.
The decline was largely a result of the delisting of Acacia Mining coupled with the decrease in prices from some of the domestic companies and some of the cross-listed counters.
The weighted average market price earnings PE ratio for domestic listed companies was trailing at 21.11 times slightly lower that the PE ratio of 21.62 times as of September 2019.
The decrease was attributed to the slight increases in earnings in some of counters relative to their prices. The trailing weighted average dividend yield (DY) remained at 4.7 per cent compared with 4.6 per cent during the previous quarter.
The trading in the secondary market fixed income/ bonds market decreased during the quarter from the turnover of 458bn/- on the face value of 492bn/-to the transaction value of 309bn/- at the face value of 324bn/- as at the end of Q4.This was a recorded decrease of 33 per cent compared with the previous quarter.
The total outstanding of listed government treasury bonds increased by 5 per cent to 10.53tri/- in the reference quarter from 9.99tri/- as at the end of September 2019. This was a net increase of 532bn/-.
On the other hand, the outstanding Corporate bonds listed at the Exchange remained at 176bn/- issued by four corporate entities, namely TDB (formerly PTA Bank), EXIM Bank, NMB Bank and TMRC.
Transactions in the corporate bonds market increased from 65m/-in Q3, 2019 to 145m/-in Q4, 2019.