Saturday, September 28, 2013

Dar es Salaam Bourse Stock Index Plunges

THE Dar es Salaam Stock Exchange all share Index (DSEI) plunged over 23 points pulled down by cross listed shares which depreciated on their mothers' bourses.
The DSEI saw its index down to 1585.75 points from 1609.41 points of Monday being the largest single drop in two days in the history of the bourse since it opened business 15 years ago.
According to Tanzania Securities the DSEI, which measures activities of all shares at DSE was dragged down by depreciation of Nation Media Group (NMG), Jubilee Holding Limited (JHL) and African Barrick Gold shares.
NMG and JHL, listed on Nairobi Stock Exchange, stocks declined from 5,780/- and 4,880/- to 5,520/- and 4,780/- respectively.
While ABG cross-listed from London Stock Exchange went down from 4,180/- to 3,700/-. This means on average the wealth of those holding the said equities has gone down by over 20 per cent in the last two days.
Zan Securities Chief Executive Officer (CEO), Mr Raphael Masumbuko said although all share index went down it had lesser significant impact on the local investors since are not affecting domestic stocks rather those listed abroad.
"We would be worried if the TSI (Tanzania Share Index) was dropping, since this capture local share happening, but cross listed not bring impact to us," Mr Masumbuko said.
TSI remained flat at 1998.6 points. The CEO said the impact would be on the market capitalization where cross-listed stocks carry heavy weight on the market caps, which "we do not take seriously... we watch keenly domestic listed shares happenings."
He said the biggest worry could be if the domestic heavy weighted stocks on DSE--NMB and TBL--share are going down, but there are climbing at good pace.
Since January to date NMB and TBL shares have climbed up 65.09 and 24.53 per cent to 1,880/- and 3,760/- respectively, to push domestic market caps to 4,198.93bn/- of Wednesday from 4,150.76bn/- of end of last month.
The DSE market capitalization thus dropped from 14,297.30bn/- of Monday to 14,087.98bn/- of yesterday. Six companies have cross listed to DSE of which five from NSE and one from LSE.
The shares are seldom trading because they were listed on Dar bourse using same price trading level at the time of listing thus denying local participation.

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