Dar es Salaam bourse share trading tumbles

M-pesa · 2011-09-25T19:44:47+00:00

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 worlds 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 bourseas 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 markets 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

Thread starter M-pesa
Start date Sep 25, 2011

M-pesa

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Dar es Salaam bourse share trading tumbles

M-pesa

JF-Expert Member

Our Community

Regional Communities