- Basically, Swissport shares are highly sought after but they are also hard to come by at the DSE and as a result, investors tend to purchase them under the ‘All Or None (AON) arrangement.
Dar es Salaam. An improved supply of shares for Swissport Tanzania sent the weekly turnover at the Dar es Salaam Stock Exchange (DSE) up by 56 per cent last week as investors remain bullish about the ground handler’s business prospects amid expectations that Tanzania’s skies will soon get clouded with more air transport operators.
Basically, Swissport shares are highly sought after but they are also hard to come by at the DSE and as a result, investors tend to purchase them under the ‘All Or None (AON) arrangement.
The AON is an instruction used on a buy or sell order that instructs the broker to fill the order completely or not at all depending on the availability of stocks.
“So what happened last week was basically an indication that the right demand for Swissport shares did meet the required supply for the ground handler’s stocks,” said the Zan Securities Limited chief executive officer, Mr Raphael Masumbuko.
Swissport accounted for Sh4.421 billion or 53 per cent of last week’s Sh8.3 billion turnover, market data show.
This comes at a time when the government has started delivering on its promise of reviving Air Tanzania Company Limited’s lost glory.
It has so far delivered two turbo prop Bombardier aircrafts. President John Magufuli told editors last week that the government has also made a 30 per cent advanced payment of three more aircrafts – including a 137-150-seater jet of Bombardier CS300 model – which will arrive in the country next year. Similarly, the government has also made a 10 per cent advanced payment for the purchase of a 200-seater Boeing that will be plying directly between Dar es Salaam and America, China and Russia among others.
Domestically, while Precision Air and Fastjet are strategising to further improve their operations, the Tanzania Civil Aviation Authority announced two weeks ago that two new operators have applied for licenses to start scheduled domestic flights.
Apart from Swissport, TBL and DSE Plc also emerged as some of the most active counters at the Dar es Salaam bourse last week, according to data compiled by Tanzania Securities Limited (TSL).
TBL – which makes Kilimanjaro Premium and Safari Lager among other beer brands – accounted for Sh2.779 billion or 34 per cent of the week’s turnover while the DSE Plc’s Sh943.72 million-contribution was equivalent to 11.3 per cent of the week’s turnover.
During the preceding week (week ending October 28), some Sh5.304 billion was registered in total turnover.