Dar es Salaam Stock Exchange Chief Executive Officer, Moremi Marwa.
The Dar es Salaam Stock Exchange’s performance has grown significantly in the past year as a result of rising shareholders’ wealth and liquidity levels, as well as better value to DSE-listed companies and investors.
“Our domestic and total market capitalisation, for example, grew by 66 per cent and 40 per cent respectively,” said DSE’s chief executive Moremi Marwa.
Market capitalisation is one of the indicators of how the stockmarket is performing. It measures how the stockmarket contributes to the economic growth and wealth generation of investors.
Total market capitalisation to GDP before the October 2014 rebasing of the economy was about 43 per cent, up from 30 per cent in January. This means that investor’s wealth grew from Tsh16.5 trillion ($9.2 billion) to Tsh22.7 trillion (12.7 billion).
DSE liquidity increased significantly during the year from the previous average turnover of Tsh50 billion ($28.1 million) per annum to an average of Tsh300 billion ($169 million) in the past two years.
Relative to the GDP, the domestic liquidity ratio was at six per cent compared with a ratio of less than two per cent previously.
Mr Marwa said that historically, the average Price to Earnings (PE) ratio on the DSE-listed companies has been less than 10 times, substantially on the lower side compared with the global markets average range of 15-25 times.
Mr Marwa said that the DSE’s average market PE ratio is 17 times; in some counters the ratio is more than 20 times, which is attractive for listed companies and potential issuers.
The East African
No comments:
Post a Comment