Dar es Salaam Stock Exchange profit plunges after historic sale of Voda shares

Wednesday January 29 2020
DSE PIC

DSE Plc chief executive officer, Mr Moremi Marwa. photo | file

Dar es Salaam. The net profit for the self-listed Dar es Salaam Stock Exchange (DSE Plc) dropped by over three times during the fourth quarter of 2019 compared to the preceding quarter, the company’s financial statement shows.

The drop was on account of a slowdown in transactions upon which the bourse depends for its financial muscles.

The bourse recorded a net profit of Sh631.3 million during the last quarter of 2019 from Sh2.430 billion that was recorded during the third quarter of 2019.

The DSE Plc management, however, says the high profit for the third quarter was a result of unprecedented high transaction during the period, noting that market conditions remained bullish. “Market trends remain bullish despite a normal drop in our fourth quarter profitability.

“The drop was largely due to the fact that during the third quarter, we registered a single transaction that had a lot of money, which could not be repeated in the third quarter,” the DSE Plc chief executive officer, Mr Moremi Marwa, told The Citizen.On September 18, 2019, the DSE registered a record transaction when Tanzanian tycoon Rostam Aziz officially sold his 588 million shares – formerly held under ‘Mirambo Holdings’ – to the Vodacom Group of South Africa. In a combined financial report statement for the quarter ended December, 2019, DSE Pls says its transaction fees declined to Sh157.459 million from Sh1.5 billion that was recorded during the quarter ending September, 2019.