SHARE WATCH: WanaJF, Anyone Into Buying Shares Online?!

[Steve Dii]

I'm interested in share buying and the whole concept of capital markets; Are you?!...

The definition of which as per wikipedia states: The capital market is the market for securities, where companies and the government can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission, oversee the capital markets in their designated countries to ensure that investors are protected against fraud. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded.

I'm sure there are other resources out there, but I currently find www.e-trade.com and barclays stockbrockers as appropriate online tools for buying and selling shares of multinational companies listed on markets in either country (US and UK with cross linking of others too). Have been doing this since 2002, though I must admit I'm engaged at a very elementary level, just a few shares every now and then for the sake of involvement.

Now, I feel the urge to ask members at JF if anyone is interested in the same, whether you are an expert trader or a mere keen onlooker.

We could use this thread to scan the markets for long term investment, 'bulls and bears', share ideas and news on our nascent Dar Stock Exchange, Nairobi Stock Exchange and Kampala Stock Exchange as they become linked, e.t.c.

Therefore, I wholeheartedly welcome all of your comments and ideas in this. Many Thanks.

SteveD.

 

[Steve Dii]

No takers?!

SteveD.

 

[Pundit]

SteveD, how did the current market swings affect your portfolio?

 

[Steve Dii]

SteveD, how did the current market swings affect your portfolio?

Sorry Pundit, but can you be a little specific please.. As a matter of fact, I didn't initiate this thread to discuss my personal portifolio and I wouldn't expect anyone to do so, but again I hoped everyone would see that, off course some wont. I wonder if you fall in the later group.


SteveD.

 

[Pundit]

If you want a serious discussion of the markets in the manner presented here you will eventually have to discuss some aspects of your personal portfolif course I am not asking how many thousands you have and how much you lost, I thought the idea was more like getting tips from each other "Yo, stay out of the financials and banks, the sub-prime crazyness is no joke" and stuff like that.the question was aimed at eliciting your personal experience in the current tumults of the market, not to fish for personal information.

Remember, you started the thread, are you shying away from your own game bro?

 

[Steve Dii]

.

Remember, you started the thread, are you shying away from your own game bro?

No, not at all Bro. Only that in holistic sense your question above was rather personal to me, but thanks to you that you now have made your point clear. I appreciate.

Back to the 'game' Pundit;
Commodities and Bluechips: Between these two, what would you rather have your portifolio flourish in?

SteveD.

 

[Mama Lao]

Mimi niko interested na Share...tafadhali nipeni basics...at lest kwenye DSE inaonekana ni investment nzuri ila hatuna elimu ya kutosha. I have bought several ila ndio tunaziangalia tu...saa nyingine gawio sh 7.
...niko bongo

 

[Pundit]

Mama Lao I do not have enough info about the DSE.

Common Cents will be back online soon, this is an attempt of centralizing Tanzanian commercial info.See http://tzcommoncents.wordpress.com/

SteveD

I would go with commodities.Platinum, corn and soybeans are doing good and the alt fuel is going to drive Corn up because of Ethanol.Blue chips are weaklings under "Blue Chip blues" and I think the subprime is speading to the general economy, anything with alt fuel in it will develop an abnormal curve.Emerging Markets are the thing, especially China.Gotta do your home work though.The Hang Seng is a good place to start.

 

[Steve Dii]

Amidst this turmoil worldwide, some analysts urge to stay put and buy more shares. They say it is the right time to start investing, since much of the plunge is based on market speculation by financial institutions.

Kwa hapa Tanzania na wale mliopo Dar Stock Exchange, hii downfall ya stock market pande nyingi duniani imesababisha impact yoyote?!

SteveD.

 

[Steve Dii]

Something interesting from Dar Stock Exchange...

DSE in vibrant mood, mulls over listing SMEs

22 Jan 2008
By Jonathan Njau

In this second and last section of a serialised interview, Our Special Correspondent Theo Mushi takes the debate further with the Dar es Salaam Stock Exchange Boss Jonathan Njau, this time focusing on past ten years performance and the advanced homework for the introduction of so called `enterprise growth market` or small and medium enterprises (SMEs) segments on the bourse.

Excerpts:

Q. What was the performance of DSE in 2007?

A. As far as the value of business is concerned the index was rising during the year from 1000 to 1022.5 which was an increase of 22.5 percent.

The market capitalization of listed share also increased which is derived by multiplying the total number of shares of all companies by the respective prevailing share prices. The ‘blue chip' is TBL and if its share prices drop then it would have a significant effect on market capitalization.

Q. Is there fear or reluctance for companies to get listed at DSE?

A.This can be attributed to the disclosure requirements which should be put on the table and not under the carpet and listing demands a lot of transparency from the listed company.

Ignorance has also contributed to the slow pace of listing of companies at the DSE. Some not all the owners of potential companies for listing are not aware of the advantages of listing.

One of them is that it is a cheaper source of capital than borrowing from banks at high lending rates and the other is that disclosure requirements lead to better corporate governance.

Brokers need to conduct intensive public education to sensitise companies to go public for listing at DSE. It is worth noting that most of these companies are family enterprises and do not want ``outsiders`` to know how they operate their businesses.

DSE has developed a Training Manual with a cost or modules which it intends to use in public education on capital markets and DSE. It will also teach the potential stakeholders managerial, business skills and how to source capital.

The other reason for non-listing is that it is erroneously believed that it is very difficult to raise capital because IPO expenese are too high but they need to realize that listing expenses are tax deductible. Fees are not paid upfront until the company has raised the needed capital.

There is also shortage of human resources because brokers are understaffed and there is lack of capacity to market issues.

Q. What is the progress in establishing the second tier or informal market at the DSE?

A. We do not call it by that name and the official name is ‘Enterprise Growth Market'. Trading rules have been finalized for listing of SMEs by DSE and CMSA. CMSA has also established all regulations which will govern the market.

Those regulations pertain to the licensing of nominated advisors. These will be companies with experts in investment analysis as well as developing business ideas and business plans to meet the market entry requirements. They will also deal with packaging the business plans to attract other investors.

Q. What are the listing conditions in the `growth market`?

A. These are less stringent than in the main market. The record of existence of three years is no longer required and what is needed is strong business plans to convince investors.

The profit track record of two years is not applicable here and what is needed is a well costed and researched business plan. The number of shares held by the public has been reduced from 1000 to 100.

Q. Which companies have applied for listing at the DSE?

A. The companies which have applied for listing are NMB, Dar es Salaam Community Bank, and Tanzania One but it seems they are not as enthusiastic as they were before.

CRDB Bank Limited had also indicated its intention for listing but it seems there is some pressure from shareholders not to rush for listing at DSE. As far as NMB is concerned, DSE and Capital Market and Securities Authority (CMSA) have made all approvals and what is awaited is for the government to endorse pricing and evaluation so that the IPO will be floated at least before the end of January.

Q. Are incentives offered by the Government sufficient to attract companies for listing?

A. It is proposed that the response would be move favourable if the corporate tax is lowered further for an interim period of five years.

It was reduced from 30 to 25 percent for listed companies. But this is applicable if 35 percent of shares are in the public hands (individuals) but there is no listed company which enjoys this deduction because in most cases strategic investors hold 75 percent of the shares in listed companies.

The other proposal is that listed companies should be given priority in public procurement including the Government as an additional incentive.

* SOURCE: Guardian

Source link: http://www.ippmedia.com/ipp/guardian/2008/01/22/106782.html


SteveD.

 

[Ben Saanane]

Mkuu Wangu,

Hivi punde nimemsikia Said Yakubu akisema soko la hisa barani Europe limeshuka.Na je impact zake huoni hata kwa Bongo itakua ni kazi?
Maanake hili suala limezua kasheshe sana huku India

 

[Kitia]

Mimi na husika kwenye SHARES ya DAR-ES-SALAAM....
Ku nunuwa and ku uza...
Kama una taka help au advise, ni contact mimi !

I deal in buying and selling of Shares in the dar es salaam stock exchange ( market) ...
I provide consultancy for those people who want to invest in DSM stock exchange.
Thanks

I am interested in trading in the DSE. I live in Finland, so how do I go about doing it?

 

[Koba]

kumbe JF kuna traders,sasa hapa pazuri,i'm a trader too lakini i dont trade stock...damn slow for me,lots of regulations,millions of stocks to pick na sipendi idea ya 50% margin,i trade mini S&P 500 and forex ingawaje ni high risk lakini you know theres a big buck kama unajua unachofanya,so kama kuna yeyote is doing the same i'll be glad to share some ideas,lakini pls gotta be serious bcause this is a serious shit na kama ni novice and you have no clue with trading you better learn first,theres a lot of websites where you can learn about trading lakini depends what you need to trade....trading is a high risk bussines and sometimes very frustrating lakini thats where the big money is,come back to DSE kwa kweli sijui niseme nini maana hawako online na volume ni ndogo sana na sijui kama you can make a living through DSE,nasikia still wanatumia chalk,board anyway i'm not the one to judge lakini i'll never do business with DSE(atleast for now)

 

[Koba]

Mimi na husika kwenye SHARES ya DAR-ES-SALAAM....
Ku nunuwa and ku uza...
Kama una taka help au advise, ni contact mimi !

I deal in buying and selling of Shares in the dar es salaam stock exchange ( market) ...
I provide consultancy for those people who want to invest in DSM stock exchange.
Thanks

...you guys need to go online with electronic platform its so easy & cheap sijui kwanini hamfanyi mpaka sasa lakini kwa volume ya DSE niliyoiona i doubt,na news/research zote lazima ziwe wazi to any interested customers maana kununua share DSE sasa ni kama gambling tuu

 

[Steve Dii]

...you guys need to go online with electronic platform its so easy & cheap sijui kwanini hamfanyi mpaka sasa lakini kwa volume ya DSE niliyoiona i doubt,na news/research zote lazima ziwe wazi to any interested customers maana kununua share DSE sasa ni kama gambling tuu

Koba,

Swala la shares sehemu nyingi hata huko ulaya ni sawa na gambling tu ndugu yangu. Ila risks zinapungua zaidi kama unanunua share kwa lengo la kuwekeza kama long term investiment kwenye kampuni inayoaminika. Wee hebu fikiria, CRDB miaka ya early 2000 profits zao zilikuwa in millions, lakini hivi sasa they are in billions... waliowekeza huko sasa hivi wanapeta! So goes to viwanda vya cement Tanzania.

Infact, if i have to invest in a company, i.e. buy shares in Tanzania, the first option would be in cement producing companies and TBL (beer), these two for Tanzania business environment, i don't think will ever go down... unless some catastrophe like power blues and other 'acts of nature' happen!


SteveD.

 

[Koba]

Koba,

Swala la shares sehemu nyingi hata huko ulaya ni sawa na gambling tu ndugu yangu. Ila risks zinapungua zaidi kama unanunua share kwa lengo la kuwekeza kama long term investiment kwenye kampuni inayoaminika. Wee hebu fikiria, CRDB miaka ya early 2000 profits zao zilikuwa in millions, lakini hivi sasa they are in billions... waliowekeza huko sasa hivi wanapeta! So goes to viwanda vya cement Tanzania.

Infact, if i have to invest in a company, i.e. buy shares in Tanzania, the first option would be in cement producing companies and TBL (beer), these two for Tanzania business environment, i don't think will ever go down... unless some catastrophe like power blues and other 'acts of nature' happen!


SteveD.

...its true Steve,its pretty much gambling so as any other business,najua TZ ni buy & forget hoping things will go my way,anyway kama nilivyokuambia mwanzoni i dont do stocks na one thing tunakubaliana this is a risky business,ila ombi langu kwa hao jamaa wa DSE waweke mambo online walio nje waweze kuuza na kununua kirahisi na inabidi watu muanze kufungua brokerage firm zenu ili kusaidia DSE iwe active kidogo na kuhamasisha wananchi kwenye hii culture,na vipi huoni kama kukosekana kwa serious investment banking inarudisha nyuma sana maendeleo yetu maana hizi retail/commercial sio rahisi peke yake ku jump start hii kitu,vipi mlishawahi kufungua kakampuni kenu and rise some cash kwenda kushindana na kina manji pale BOT kwenye treasury bills,najua for sure wahindi wanatengeneza billions pale BOT kimya kimya

 

[mtambo]

SteveD, thx for this info.

Can I have yr contact?

 

[Steve Dii]

Dar Stock Exchange slowly growing up

By Sarah McGregor
Business Standard; Wednesday,January 30, 2008 @00:03


ALMOST a decade on, the Dar es Salaam Stock Exchange (DSE) is still working hard to convince sceptical businesses it is a cost-effective way to raise capital and expand.
''The problem is that not many people understand the mechanics of the stock exchange and how it operates. That takes time," Jonathan Njau, DSE Chief Executive Officer (CEO), said in an interview with IPS recently.

"Even the New York Stock Exchange (NYSE) started small and took years to develop."
Seven local companies are listed on the DSE and another three firms are cross-listed on the more active and rapidly growing bourse in neighbouring Kenya, the Nairobi Stock Exchange (NSE).
The DSE trading room, situated at Twiga House, along the Samora Machel Avenue, seats six dealers in front of computer terminals and a screen projecting transactions in real time.

Trading runs Monday to Friday from 10 o'clock to noon but occasionally closes early if business is slow.
Mainly local pension funds, banks, insurance companies and a mutual fund called Umoja -- Kiswahili for "unity" -- buy and sell shares on the DSE, which posts an average daily turnover of about 60m/-.

In 192 sessions, the DSE traded 9.8 million shares worth about 8.8 million euros, according to its latest report for the fiscal year ending June 30, 2006.
Future growth will depend largely on businesses learning that the DSE can often help expand their operations more cheaply than borrowing from lending institutions that charge interest rates of up to 15 per cent, said Njau.

"We hope to grow to at least 25 companies by 2010," said Njau, adding possible growth sectors include mining, agri-business, manufacturing, tourism and fisheries.
But companies are reluctant to debut on the DSE over concerns of exposing their accounting books for public scrutiny and complying with stringent financial reporting rules, said Njau.
Weak laws in Tanzania means private companies are able to tinker with taxes and accounting, he said.

"The problem of poor disclosure in many of our companies is rampant. It's a high price for companies to put their affairs on the table," he said.
Initial costs to prepare the company's legal affairs and balance sheets are also prohibitive, said David Hillier, head of accounting and finance at the Leeds University Business School and a financial advisor in Tanzania.

A young capital market in a developing nation such as Tanzania will take time to develop and gain experience.
"Their market is constrained by a lack of capital in the country and more accessible funding through multinational lenders," said Hillier. "This is not yet an active market."
Another problem is that most Tanzanians remain too poor to participate in the mainstream financial system, Lwanyantika Masha, a trader with a DSE-licensed brokerage firm, said.
About 36 per cent of Tanzania's 38 million people live below the poverty line, according to United Nations statistics.

"Most Tanzanians can be aware of (the DSE) but it's hard to get involved if they don't have money," said Masha.
Last year, the government sold shares in Twiga Cement through an initial public offering worth 13.7 million euros.

In a month of trading, demand from prospective buyers was more than four times higher than the amount available, said Njau.
"There is a lot of money looking for investment opportunities but the projects aren't there," said Njau.

The DSE has developed a training programme to persuade small and medium-sized businesses that the DSE can provide them with access to cheap capital in their home market and reduce their tax burden.
Njau said he is lobbying the government to revise laws -- some are held over from the country's socialist era -- so the DSE can introduce new products such as asset - and mortgage-backed securities and infrastructure bonds.

At least one international mineral company operating in Tanzania has shown interest so far. Tanzanite One, the world's biggest producer of the rare blue-hued gemstone, shifted its headquarters to Arusha, Tanzania, from South Africa's Johannesburg this year to be closer to its mining site near Mount Kilimanjaro.
The company hopes to join the DSE this year to further boost its image as a home-grown company.

"We want people to realize that we are a passionate Tanzania business," said Ian Harebottle, chief executive officer, in an interview. "It will help create a broader base for Tanzanians to benefit."

The Dar es Salaam stock exchange is not unique in the region.
Rwanda is set to open its own bourse in the first quarter of this year, while Kenya, Uganda and Tanzania are in talks to merge their bourses into an East African stock market.
US Trade Secretary, Henry Paulson said, after meeting finance ministers of the five-member East African Community in Arusha this past November, that capital markets are crucial to sustain economic growth and cut poverty in poor nations.

DSE, which opened in April 1998 with one listed company and trading once a week, will celebrate its 10th anniversary this year.

Source: DailyNews.

SteveD.

 

[Steve Dii]

SteveD, thx for this info.

Can I have yr contact?

Thanks buddy, pls pm me or just write me a mail via address provided on my stats (msn). Laters.

 

[Siao]

Jamani msaada kwenye tuta hapo... wazee wa uchumi!!

Mtu ana vilaki vyake (maana Tz ni vilaki tu) aweke fixed account au anunue hisa? Nirushie visentensei vichache tu vinisaidie kujua kupi ndiko kujanja... nafikiria ka"analysis" karahisi ili mie ambaye ndo hivyo tena hizo term za uchumi nazikiaga kwenye bunge hapa nielewe!
Mara hisa mara fixed acount,hee! Tusaidieni.

Siao.