[2007-10-10]  DSE beefs up stock trading technology
The Dar es Salaam Stock Exchange (DSE) plans to implement Automated Trading System (DATES) and Central Depository System (CDS) through a Wide Area Network (WAN) in a bid to improve stakeholders` access to the systems even when operating from their offices countrywide.

WAN is a long-distance communications network that covers a wide geographic area, such as a state or country that uses such devices as telephone lines, satellite dishes, or radio waves to span a larger geographic area than usual.

Its main purpose is to provide reliable, fast and safe computerised data and images at all the network points.

The DSE Chief Executive Officer, Jonathan Njau, told this newspaper that implementation of DATES and CDS through WAN will open up DSE operations to other regions and so create the possibility of increasing liquidity and facilitate deepening of capital markets and availing financial services to other regions.

Njau said the move would also enhance capital markets ability to raise capital for companies wishing to expand their operations.

At the moment, he said, many companies operating in the country do not understand how they could raise capital through stock markets, the reason why the bourse was planning to carry out more public education campaigns.

The exercise would take the form of sensitization seminars on the importance of capital market in the development of our country, targeting small and medium enterprises (SMEs), secondary, higher learning institutions and ordinary citizens, he said.

Last week the DSE launched countrywide training for SMEs in a bid to make them understand the various ways of raising capital through stock markets in Tanzania.

Meanwhile, the public has been encouraged to invest in listed shares since this investment avenue has more benefits compared to other investment options, an expert has said.

Speaking to this paper in an interview , George Fumbuka, the Chief Executive Officer of Consultants for Resources Evaluation Ltd, (CORE) Securities , said that the price of shares of listed companies is often much higher, even ten times more, as when compared to those which are not listed.

`In the stock market we have a price discovery mechanism which enables investors to get the best price of their shares as when intends to sell`, he said.

Another advantage is exit mechanism, for shareholders could easily sell their shares as when they wish to do so.

Fumbuka said investing in shares allows one to plan ahead with amplified convenience.


Source: ©1998-2007 IPPMedia Ltd.