Dar es Salaam Stock Exchange boosts operations and incomes

Tanzania’s Dar es Salaam Stock Exchange (www.dse.co.tz) has seen great trading results after strong operational improvements in 2013. It doubled trading hours from 2 to 4 hours a day, and cut the settlement cycle from 5 to 3 days on equity and from 3 days to 1 day on bonds, according to an article in Tanzania’s Daily News today (29 Jan). It also introduced a wide area network (WAN) so that brokers can access the trading platform from their offices instead of coming into the DSE’s scenic offices.

Total trading was TZS 252.3 billion ($155.8 million) in 2013, a giant leap compared to 2012 when it was TZS 50.9bn (it was TZS 51.8bn in 2011 and TSZ 36bn in 2010).

Combined income for the 7 stock-broking firms from commissions (selling and buying) was about TZS 6.5bn, up from TZS 1.3bn in 2012 and similar in 2011. Commissions range according to size of transaction but generally range between 0.8% and 1.7%. The regulator, the Capital Market and Securities Authority gets 0.14% of the transactions or TZS 353.2m.

Moremi Marwa, CEO of the DSE, commented in the Daily News: “It was a historic year.” He said that market share was about 60% split between Orbit Securities and Tanzania Securities, while Core Securities had about 20% and Vertex International Securities, Zan Securities, Solomon Stockbrokers and Rasilimali Limited share the remaining 20%. Core’s share may have been influenced by a single large transaction.

Dar es Salaam harbour. Photo: Tom Minney
Dar es Salaam harbour. Photo: Tom Minney

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