The Dar es Salaam Stock Exchange index performance climbed by 4.8 per cent in the first half of this year, while the Nairobi Securities Exchange index dropped by 2.3 per cent; the Uganda Securities Exchange by 4.1 per cent and Rwanda Stock Exchange by 7.1 per cent.
DSE chief executive officer Moremi Marwa said total market capitalisation increased from $9.5 million to $9.72 million.
“We have seen stockmarkets in other African countries record mixed results. We have also been battered by a slowdown in growth, the collapse of commodity prices, adverse weather, regulatory challenges and rising debt,” Mr Marwa said, adding that post-Brexit fears have added to global risk aversion.
“These fundamental and sentimental factors have impacted investor fund flows into the continent,” said Mr Marwa.
For the second time this year, the DSE has seen its domestic market capitalisation drop by seven per cent, from $378.9 billion as at the end of March to $353.9 billion as at the end of June.
Market liquidity also recorded a decrease to $45.6 million from $55 million. The Tanzania Share Index (TSI) decreased from 3,972 points to 3,706 points.
At the NSE, the All Share Index retreated 3.6 per cent from 145.5 points in January to 140.46 points as at the end of June. Investors have also seen their returns fall this year, with the NSE 20 Share Index ending June — which represents a composite of Kenyan blue-chip companies — at 10 per cent down for the half-year period.
NSE data shows that the number of trades fell by 31 per cent to 158,790 in the six months to June, from 232,212 in the same period last year. At the same time, equity turnover declined by 29.5 per cent to $750 million, from $1.06 billion recorded in the first half of last year.
Source: The East African