Dar es Salaam bourse share trading tumbles


JF-Expert Member
Sep 4, 2011
By ABDUEL ELINAZA, 19th September 2011 @ 12:10, Total Comments: 0, Hits: 206

THE Dar es Salaam Stock Exchange (DSE) has recorded another week of decreased activity after turnover tumbled by 59 per cent in the past week due to what brokers said was lack of foreign participation for five consecutive weeks.

Last week which was the 38th for this year witnessed poor foreign participation due to financial worries in the more advanced economies and high world gold prices. Tanzania Securities Business Analyst, Mr Joel Joseph, said yesterday that equities and gold are competitive commodities that when the former is lagging investors tend to shift to the latter for safe- haven.

“When volatility increases on equity and currency markets, buyers tend to shift their investment to gold,” Mr Joseph said adding “gold is a hedging instrument.”

In recent days gold prices in the world market have shot up considerably to 1,900 US dollar (about 3.04m/-) per ounce after investors increase their doubt over the world’s leading economies’ debt crisis and austerity measures that have rocked Europe while US was down graded by rating agencies for the first time in more than five decades.

“Thus investors rushed to gold and pushed its prices up to all time high,” said the Business Analyst during an interview with 'Daily News'. He also said inflation rate has reached 14.1 per cent, which is 30 months high, reduced the value of shilling considerably to avert stock buyers form participate in the bourse—as the gains would be eaten by the rate.

According to the weekly market commentary, issued by Tanzania Securities, the status of recovery in the financial sectors in the West is expected to continue to hinder foreign investors from investing in DSE.

“Looking into next week, we expect continued low level of activities since we do not anticipate activities involving foreign investors who usually contribute significantly to the market’s activities,” the Commentary said.

Nevertheless, both DSE all share Index (DSEI) and Tanzania Share Index (TSI) edged upwards as some counters’ prices continued with the rising trend. DSEI closed the week at 1,286.69 points, an increase of 2.92 points (0.23 per cent) from last week while TSI gained 6.76 points (0.62 per cent) during the same period.

The upward movement of the indices is mainly attributed to Twiga, TCC, TBL and Swissport share prices performances.

source: http://www.dailynews.co.tz/business/?n=23797&cat=business

Toa taarifa ya maudhui yasiyofaa!

Kuna taarifa umeiona humu JamiiForums na haifai kubaki mtandaoni?
Fanya hivi...

Umesahau Password au akaunti yako?

Unapata ugumu kuikumbuka akaunti yako? Unakwama kuanzisha akaunti?
Contact us

0 Reactions
Top Bottom