Evaluating the DSE’s half-year performance
The Dar Es Salaam Stock Exchange total market capitalization which covers all recorded an increase of 7.5 per cent as of 30th of June 2021 compared to the previous quarters that ended 31st march 2021. Joining CNBC Africa for more is Moremi Marwa, CEO of the Dar Es Salaam Stock Exchange.
Tue, 17 Aug 2021 15:02:21 GMT
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AI Generated Summary
- Market capitalization increased by 7.5% in the first half of 2021, driven by banking, brewery, and cement manufacturing sectors
- Companies like Majority, TIGA, CRDB, Voda, and Nicole were major movers in the market, contributing to the overall growth
- Fixed income market saw increased liquidity, with investors favoring treasury bonds amid economic uncertainties
The Dar Es Salaam Stock Exchange (DSE) has reported a strong performance in the first half of 2021, with a total market capitalization increase of 7.5% as of the 30th of June 2021 compared to the previous quarter that ended on the 31st of March 2021. Moremi Marwa, the CEO of DSE, highlighted that the market's main indices increased by 9%, largely driven by the banking, brewery, and cement manufacturing sectors. These sectors saw good progress in terms of pricing and valuations, leading to an overall boost in market cap. Companies like Majority, TIGA, CRDB, Voda, and Nicole were the major movers during this period, contributing significantly to the market's growth. However, Marwa acknowledged that some listed companies showed volatility or remained stagnant, emphasizing the importance of companies engaging with investors to drive activity in their counters. Additionally, the fixed income market also saw an increase in liquidity, driven by secondary market activities on treasury bonds. Investors have shown a preference for low-risk asset classes like bonds amidst economic uncertainties related to the COVID-19 pandemic. The government has been issuing bonds to finance budgetary needs and infrastructure projects, further boosting liquidity in the market. Marwa assured that DSE is working to educate and inform companies to enhance public awareness, promote liquidity, and improve pricing and valuation in the market.
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