[2007-04-26]  Citizens 'Don't Know' DSE, Study Says
A majority of the elite in the rural areas, let alone the poor do not know the existence of the Dar es Salaam Stock Exchange (DSE), a study conducted recently indicates.

About 90% of 3 000 people interviewed randomly across five regions said they have never heard of DSE.

The study, done by Mulich Publications Limited, for a client wishing to list in the stock exchange also reveals that DSE does not have representatives in the regions and operates only in Dar es Salaam.

Hardly are there members of the bourse in the regions or stockbrokers, hence hindering the wishes of the few who may wish to buy shares listed at DSE.

Out of the 10% who said they knew about the bourse only 2% indicated they have bought shares in it. They said they preferred the Umoja Units when the government puts them on sale because banks, which have presence in rural areas sell them.

The 10% group comprised mainly civil servants, especially teachers.

According to the study, which deliberately excluded Dar es Salaam where the bourse is located, neither the DSE as an entity nor its members and agents have bothered since the inception of the DSE to have their presence felt in the region.

The study also found out that a majority of top executives in medium sized companies are aware of the benefits of listing in the stock exchange, but do not make a move.

The study, conducted in 4 months up to last February concluded that there was a need for the DSE to spread its wings especially to Arusha, Mwanza and Mbeya, where the majority of the 10% group that is aware of DSE existence lives.

Surprisingly, the study found out that 0ver 80 per cent of the respondents could identify a company listed in the exchange. The firms, which are widely recognised were Tanzania Breweries, Tanzania Cigarette Company and Twiga.

Meanwhile, the 12-year-old bourse is still in early stage of development and cannot meet the investment needs of the pension funds, the Governor of the Bank of Tanzania (BoT), Mr. Daudi Balali has said.

Trading at DSE takes place four times a week from Tuesday to Friday but the level of activity is still very low. Sessions start from 10:00 am and are supposed to go on up to 12:00 noon, but end before set time most of the days.

But upbeat Jonathan Njau, DSE CEO says the bourse is going places and activities have been increasing over the years.

"Right now we are gearing up for a common stock market in East Africa," he said adding that Tanzania, Uganda and Kenya bourses have endorsed a three year road map to integrate the stock market within the east African treaty.

He said DSE recorded a turnover of Tsh11.20 billion ($11), which was no mean feat.

"We have automated trading system and CDS are operational since mid-December 2006 on a local area network," he said.


Copyright © 2007
Source: Copyright © 2007 East African Business Week.