Saturday, December 31, 2011

Tanzania Stock Market Commentary – Week Ending December 2, 2011

The DAR ALSI moved up 9bps to 1,303.8. Top gainers were Swissport (+1.2% to TZS 820) and NMB (+1.2% to TZS 850). There were 9.7m Tanzania Tea Packers (TATEPA) shares traded at TZS 230 per share (-51.6% from TZS 475-market price) in one deal that made the tea company the week’s top value trader and top decliner. Other actively traded counters were NMB and TWIGA.
In company news, Serengeti Breweries commissioned its Moshi plant with capacity to brew 500,000hcl and is expandable by an additional 300,000hcl. This brings the brewery’s total capacity to 1.5mhcl. Serengeti Breweries is a subsidiary of East African Breweries Ltd.
Swiss company, Augusta Energy, has been awarded a USD 500m contract by the government to supply 540,000t of oil to the country for the first two months of 2012. The contract marks the introduction in Tanzania of a new bulk procurement system for oil imports.

Tanzania: Stock Exchange in Dar es Salaam Still Standing Strong

Sebastian Mrindoko

It continued to offer its core business that is a platform for intermediation of the securities in Tanzania and allowing providing value to the listed securities.
It also continued with an important task of regulating the market to ensure investor protection, efficient processes and best practices. "The 2011 has been a good year for the equity market against the backdrop of challenges seen in the macro-economic parameters like the weak shilling against major currencies, high inflation, high interest rates," said the DSE Chief Executive Officer, Mr Gabriel Kitua, in an interview over the bourse performances.
This year, African Barrick Gold (ABG) cross-listed and Precision Air will be listed on Wednesday December 21. The two companies have added an opportunity for them to be able to fund their future growth through issuance of bonds or additional shares through our capital markets.
According to Mr Kitua, the new companies also have widened the investment opportunities to Tanzanians that has always been limited. The value of listed securities appreciated improving the wealth and so the livelihood of the investors holding the stocks in our market. For example, the Tanzania Share Index that tracks movement in value of listed domestic companies appreciated by 22 per cent from 930.09 points in January to 1,142.97 points as of November 2011.

Euro could become world's leading currency: Noyer

PARIS (Reuters) - The euro could become the world's leading currency in the next decade if leaders of the single-currency bloc succeed in tightening fiscal integration, European Central Bankpolicymaker Christian Noyer said in an article to be published in the Journal du Dimanche.
European leaders struck a historic deal at an emergency summit in Brussels on December 9 to draft a new treaty for deeper economic union, in an attempt to stem the debt crisis that is threatening to cause the collapse of the single currency.
The news temporarily calmed markets. But concerns quickly resurfaced as the final details of the agreement have yet to be determined and a new treaty could take up to three months to negotiate.
Ratings agency Fitch has said it doubts a comprehensive solution to the crisis can be found and urged more decisive action from the ECB.