By Damas Makangale, Dar es Salaam, Tanzania
Trading volumes at
the Dar es Salaam Stock Exchange (DSE) last week reached Tsh 27.62 billion ($15,849,810.00m),
which approximately to 93.75 % thanks to improved efficiency and easier access
for investors.
DSE said, three years
ago, it had been trading at Tsh50 billion ($31 million) per year. However,
introduction of new schemes has simplified trading and sharply increased
turnover.
Speaking to the East
African Business Week last week in Dar es Salaam, DSE, Business Development
Officer, Aleck Ngoshani said that the new initiatives have helped the bourse to
grow its businesses across the country.
He said that last
week trading has increased compared to the previous week trading which reached
to Tsh 14 billion ($8,218,420.00m)
Ngoshani said that
last week trading was fantastic due to the number of factors including the
increases of the value of the each shares to the major and giant corporations
and firms in the country.
"The development
has been attributed by the four major improvements. The shifting from Local to
Wide Area Network, to cut settlement cycle, extended trading hours as well as
to create awareness to the general public about DSE businesses," he said.
He said the bourse
has improved its settlement cycle, that is, delivery versus payment for both
equities and bonds.
The improvement means
it now only takes three days to make deliveries and payment for shares, unlike
the previous five days.
"If you buy CRDB
shares (a leading bank) today, you will receive your certificate within three
working days. The one that sold you the shares will also receive his cash
during that same time," Ngoshani noted
He said that the
shares value to various financial institutions such as National Microfinance
Bank (NMB) went to 4690, CRDB 450, Tanzania Breweries Ltd (TBL) 18,424,
Swissport 5060 and Simba 6010.
He said that in the
financial institutions the trading volume increase sharply due to the fact that
NMB and CRDB shares were worth doubled compared to the previous trading.
Similarly, he added
deliveries and payment for bonds will now be done in just one working day
compared to three days previously.
Security situation
has also been improved to reduce payment risks involved during transaction for
both equities and bonds.
DSE has shifted from
the Local Area Network to Wide Area Network in a move meant to make its
services accessible by market brokers in the comfort of their offices wherever
they are. "Market brokers can now conduct trading activities right from
their offices," he said.
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