Tanzania has Africa's best performing stock market

[msemakweli]

Tanzania, which has Africa's best-performing stock market, lifted controls on foreign share ownership, the Capital Markets and Securities Authority said.

The removal of restrictions on foreigners owning more than 60 percent of companies that trade on the Dar es Salaam Stock Exchange was published in a Government Gazette dated Sept. 19, Charles Shirima, spokesman for the regulator, said by phone today from the commercial capital, Dar es Salaam. Investors from the East African Community will also be allowed to buy as much as 40 percent of Tanzanian government securities, he said.

"It's been approved," he said. Finance Ministry Permanent Secretary Servacius Likwelile didn't answer a call to his mobile phone seeking comment.
The 11-member Tanzania Share Index gained 73 percent in 2014, the most among 17 African gauges tracked by Bloomberg. The Dar es Salaam Stock Exchange, which has a market capitalization of 21.9 trillion shillings ($13 billion), is targeting a market value equal to 50 percent of Tanzania's gross domestic product by 2017, Chief Executive Officer Moremi Marwa said in an interview last month.

"The market has been off-the-radar screen for foreign investors in recent quarters" because of the restrictions on foreign ownership, Renaissance Capital said in a Sept. 9 research note. "With many major names already up to the 60 percent limit, there has been little ability for foreigners to access the market."
Tanzania's $33 billion economy, the largest in East Africa after Kenya, will expand 7.2 percent this year, according to World Bank estimates.

Source: Bloomberg hbuyosh Geza Ulole

 

[MK254]

Duh! you've opened flood gate for Kenyans. Even with 60% restriction, we had so many Kenyan companies listed.
Sasa tutaingia humo kwa fujo, asante sana.
And by the way, what do you mean by "best performing stock exchange" when the last time I checked, Nairobi had total market capitalization of $15 billion while Dar is now at $13 billion.

 

[Iconoclastes]

Good for ya bro. But I hope u realize it is partly bcos of the many Kenyan firms listed there that have aided in DSM's good performance. How many companies are listed there again? Like 16?

 

[FaizaFoxy]

Duh! you've opened flood gate for Kenyans. Even with 60% restriction, we had so many Kenyan companies listed.
Sasa tutaingia humo kwa fujo, asante sana.
And by the way, what do you mean by "best performing stock exchange" when the last time I checked, Nairobi had total market capitalization of $15 billion while Dar is now at $13 billion.

How long it took Nairobi to reach $15 billion and how long it took Dar to reach $13 billion?

 

[msemakweli]

Duh! you've opened flood gate for Kenyans. Even with 60% restriction, we had so many Kenyan companies listed.
Sasa tutaingia humo kwa fujo, asante sana.
And by the way, what do you mean by "best performing stock exchange" when the last time I checked, Nairobi had total market capitalization of $15 billion while Dar is now at $13 billion.

There are only 6 kenyan cross-listed companies at the DSE. We have a total market capitalization of $13billion but only a fraction of the listed companies compared to the NSE, which has $15billion with 40+ companies. The NSE is also way older than the DSE.
Tanzanians are to start investing outside too. Previously they were restricted by the government for fear of 'capital flight', but those restrictions have now been lifted.

 

[MK254]

How long it took Nairobi to reach $15 billion and how long it took Dar to reach $13 billion?

Wow!! mama kumbe you can engage on non-jihadi issues, am impressed. Yeah! DSE is doing well and I agree there are great thinkers behind the success. Especially now they are allowing firms whose foreigners owning more than 60% of the listed companies.

 

[MK254]

Wikendi ni movies kibao na mazoezi ya viungo, am trying 100 burpees challenge, done by American marines http://www.12minuteathlete.com/100-burpee-challenge/
Nairobi wazima ila sijui zaidi maana siko huko.

 

[Yule-Msee]

How long it took Nairobi to reach $15 billion and how long it took Dar to reach $13 billion?

The tanzanian bourse has 7 crosslisted firms, 6 of which having a primary listing at the NSE. The six firms have a market capitalisation that is equivalent to 40% of the total market capitalisation, throw in Africa Barrick Gold, the percentage rises to above 50%.

Looking at turnover, the crosslisted firms almost never trade, so although they have a market capitalisation of over fifty percent they don't contribute to turnover. On thursday 25 sept. 2014 the turnover was TZS 1,342,600,000 (USD 802,000 ).

So its pointless to compare NSE with DSE at the moment, DSE being a young exchange has some maturing to do.

Correction Nairobi has a market cap. of over $25 bil