Tanzania Stock Market Commentary – Week Ending February 17, 2012

The Dar ALSI edged up 71bps to 1,310.3. The most actively traded stocks were NMB, Tanzania Breweries (+13.2% to 2,400) and CRDB Bank. The week’s top and only gainer was Tanzania Breweries. All other counters remained flat.

On the economic front, Tanzania’s year-on-year inflation rate for the month of January came in at 19.7%. This barely a relief from the inflation rate of 19.8% for the month of December.  Easing of inflationary pressure in the country as has been seen in the other East African countries may come much slower, with an expected rise in electricity costs of about 40%.

In company news, gold production in Tanzania by Africa Barrick Gold (ABG) fell by 2% in 2011 to 688,000 ounces. According to the company’s management the cost of production went up by 22% to USD 692 per ounce on the back of higher energy and labour costs. ABG projects gold production in 2012 to come in at between 675,000-725,000 ounces. The company is also considering investments in West and Northeast Africa through mergers and acquisition.

Source: African Alliance

Tanzania Stock Market Commentary – Week Ending February 3, 2012

Written by: Editorial Staff 

The Dar ALSI went up marginally by 5bps during the week to end at 1299.0. The week’s top trader was Twiga which accounted for 83% of the week’s turnover of TZS 1.3bn (USD 0.8m). Other actively traded counters were NMB, Simba Cement (-0.8% to TZS 2380), Tanzania Breweries (+1.0% to TZS 2060) and CRDB Bank. The week’s top gainers were Swissport (+3.6% to TZS 870) and Tanzania Breweries. Simba Cement was the week’s only declining stock.

In economic news, The IMF has forecast a decline in inflation to 9% in June, as a result of an expected drop in fuel prices and good harvests. High food and fuel prices resulted in inflation escalating to 19.8% as at December 2011. The IMF is advocating for tightening of the monetary and fiscal policies to aid in lowering of inflation. Economic growth is projected to ease to 6% on the back of power outages and a slowdown in the global economy.

Tanzania expects to make major commercial discoveries of natural gas over the next five years. The government is putting in place strategies to facilitate investments in this industry.

Source: African Alliance

Too Rich, Too Soon

By Jessica Silver-Greenberg | The Wall Street Journal Chris Kemper thought she was dreaming when she found out that her grandmother had left her $6 million when she died in October 2010.
But her elation quickly turned to terror when she realized she had no idea what to do with that life-changing fortune. "I was thrilled and so scared that I would bungle it," says Ms. Kemper, a 44-year-old finance executive who lives in Westchester, Ohio.
Despite the bitter economic downturn, one part of the American dream is alive and well: the possibility of sudden wealth. 
Examples abound. Consider David Choe, an artist who five years ago decided to accept payment in stock options from Facebook for painting murals in the then-fledgling firm's offices. He stands to realize as much as $200 million when the company goes public later this year.

Volatility Rising: How to Hedge the 2012 Rally

Volatility Rising: How to Hedge the 2012 Rally

Breakout

If you've caught the explosive rally since late last year you're left with a high class problem: how to lock in gains without incurring short-term gains tax or leaving yourself out of the market when stocks are still rising.More »Volatility Rising: How to Hedge the 2012 Rally

• S&P 500 Poised for Longest Rally in One Month

Tanzania sees inflation in single figures by mid 2012

NAIROBI (Reuters) - Tanzania expects its year-on-year rate of inflation will fall to single digits by June this year from 19.2 percent in November, the east African country's president said. "We are still hopeful that our economy will grow at around 7 percent and that inflation will be brought down to single digits by June, 2012," President Jakaya Kikwete said in a statement released on Wednesday.

news.yahoo.com/tanzania-sees-inflation-single-figures-mid-2012-093056476.html

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.

Source: African Alliance

Tanzania: Stock Exchange in Dar es Salaam Still Standing Strong

Sebastian Mrindoko

DESPITE the economic shocks that hit the nation this year, the Dar es Salaam Stock Exchange (DSE) recorded increased activity on both equity and debt instruments compared to last year.

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.

Market Summary November 21, 2011

streaming quotes: ON

Symbol	Last	Change
Dow	11,547.31	248.85 (2.11%)
Nasdaq	2,523.14	49.36 (1.92%)
S&P 500	1,192.98	22.67 (1.86%)
10-Yr Bond	1.9620%	0.05
NYSE Volume		0
Nasdaq Volume		0

Indices: US - World | Most Actives

Advances & Declines

	NYSE	NASDAQ
Advances	472 (15%)	436 (16%)
Declines	2,650 (83%)	2,130 (80%)
Unchanged	62 (2%)	85 (3%)
Up Vol*	269 (6%)	419 (20%)
Down Vol*	3,969 (93%)	1,641 (79%)
Unch. Vol*	11 (0%)	11 (1%)
New Hi's	122	114
New Lo's	199	343

^*in millions

more...

Your Lawmaker Getting Rich off of Insider Trading?

Your Lawmaker Getting Rich off of Insider Trading?

Are YOU ready for Dow 7,000?

It may be shocking to hear us say that the Dow Jones Industrial Average is headed for 7,000 ...
But, yes, we firmly believe that we’re going to see the broad U.S. stock market fall another 35% from here ... AT LEAST!
Just look at what's happened recently...
• The Federal Reserve warned of "significant downside risks to the economic outlook" and the International Monetary Fund said "the global economy is in a dangerous new phase."
• Bond yields in Italy, Spain, and France are exploding higher – indicating that the world’s smartest investors expect an outright catastrophe overseas.
• And all the while, countries like Germany and China are effectively saying they will NOT support bailouts of all these faltering nations!
In response, the U.S. stock market has started plunging anew andthe major averages are sitting at critical levels, with a potential crash coming at any time!

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China inflation, output create room for pro-growth steps

By Nick Edwards and Langi Chiang

BEIJING (Reuters) - Chinese industrial output grew at its weakest annual pace in a year in October and inflation fell sharply, raising expectations Beijing will do more to support economic growth by "fine tuning" policy.

A flurry of data on Wednesday showed that China's factories are bearing the brunt of a modest economic slowdown even as consumer spending and investment in assets such as roads and other infrastructure remain resilient.

China's annual inflation rate fell to 5.5 percent in October from September's 6.1 percent -- the biggest drop in the annual rate from one month to the next since February 2009 -- and a further pullback from July's three-year peak of 6.5 percent.

http://beta.finance.yahoo.com/news/china-october-inflation-eases-wen-022643093.html

Euro plunges against greenback: Bloomberg

Traders fled the single currency amid concern Italy will join Greece in struggling to form a new regime strong enough to implement the austerity measures many investors believe are badly needed. More »

Why U.S. Markets Are Entangled in the EU Crisis

Why U.S. Markets Are Entangled in the EU Crisis

Breakout

Europe isn't getting closer to a solution but rather a dissolution of the entire euro zone. Regardless of identifying the tail and the dog, the wagging itself is going to end in tears for markets around the world.More »