PE ratio for local firms falls at DSE

Friday October 12 2018

Dar es Salaam Stock Exchange chief executive

Dar es Salaam Stock Exchange chief executive Moremi Marwa 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) Weighted Average Market Price Earnings (PE) Ratio for domestic listed companies was trailing at 21.18 times as of September 30 compared to 22.67 times as of June 30, 2018.

The DSE Chief Executive Officer (CEO) quarterly note for the third quarter of this year said this decline was attributed to the decrease in prices for domestic listed counters relative to their earnings.

The total size of the 21-domestic listed companies, as measured by market capitalization decreased during the quarter that ended September 30, 2018 when compared to the quarter ended June 30, 2018.

The total domestic market capitalization decreased by 5.5 per cent to close the quarter at Sh10.37 trillion compared to Sh10.99 trillion as of June 30, 2018 — this was largely a result of the decrease in share prices for five (5) key counters, some being major contributors to the domestic market cap basket. Companies whose prices declined during the quarter were Tanga Cement Company Limited (TCCL), Swissport Tanzania Limited (SWIS), TOL Gases Limited (TOL), Tanzania Breweries Limited (TBL) and Swala Oil & Gas Limited (SWALA) whose prices decreased by 26 per cent, 24 per cent, 15 per cent, 13 per cent and 2 per cent respectively.

However, the trailing weighted average dividend yield (DY) slightly gained to 4.0 per cent compared to an average of 3.8 per cent in the previous quarter.

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