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Dar
es Salaam Stock Exchange
(DSE) started official operations in
1998. The DSE website publishes a
market report for each
trading session. This report
provides information on the number
of shares offered and traded for
each company on each trading
session. There are 8 listed
equities with 2 of them being
cross-listed from the Nairobi Stock
Exchange.
Trading is conducted Tuesdays,
Wednesdays and Thursdays between 10
am and 12 pm. The level of activity
is very low hardly 5 deals a day
with daily turnover at slightly over
a few million Tshs. Share prices do
not change much leaving investors to
hope for profits that come from
dividends alone and not much in
terms of capital gains except maybe
after the sale of
IPOs. Demand is not high
enough to influence price and supply
seems to be at a stand still. This
is an observation and still a work
in progress for the writer, to
understand the level at which
trading takes place at the DSE.
More information will be shared as
it continues to be available.
The
DSE also trades in
Government bonds (there
are 10 listed government bonds) and
Corporate bonds (there
are 6 listed Corporate bonds).
See
table below for
commissions and other costs
to the investor.
|
|
|
Bonds |
|
Transaction size |
Commission |
|
Tshs. 40,000,000 and below |
1.16% |
|
On any additional amount
above Tshs.40,000,000 |
1.32% |
|
Minimum commission |
Tshs.5,000 |
|
Equities |
|
Transaction
|
Broker's commision |
Transaction fee |
Fidelity Fund fee* |
Total cost to investor |
|
On the first Tshs.10,000,000 |
1.70% |
0.28% |
0.02% |
2.00% |
|
On the next Tshs.40,000,000 |
1.50% |
0.28% |
0.02% |
1.80% |
|
On any amount above
Tshs.50,000,000 |
0.80% |
0.28% |
0.02% |
1.10% |
Source:
DSE
website
Notes:
*
Fidelity Fund is a fund
established to compensate investors
who suffer pecuniary loss from any
defalcation committed by
Licensed Dealing Member companies
in relation to any money or property
that has been entrusted to the DSE
member company. This compensation
however is only limited to Tshs.
100,000.
The
table below shows the tax advantages
of trading on DSE listed equities in
comparison to unlisted equities:
|
Tax advantages of DSE listed
equities as compared to
unlisted equities |
|
Taxes |
DSE listed equities |
Unlisted equities |
|
Withholding tax on dividend
payable |
5.00% |
10.00% |
|
Stamp duty on transfer of
security |
0.00% |
6.00% |
|
Capital gain tax on disposal
of security |
0.00% |
10.00% |
|
Withholding tax on interest
for bonds 3 years and above |
0.00% |
|
Source:
DSE
website
There
are 8
listed companies whose
shares can be bought at the DSE.
These companies include:
1.
TOL Limited (TOL)
2.
Tanzania Breweries Limited (TBL)
3.
Tanzania Tea Packers Limited (TATEPA)
4.
Tanzania Cigarette Company Limited (TCC)
5.
Tanga Cement Company Limited (SIMBA)
6.
SWISSPORT
7.
Kenya Airways Limited (KA)
8.
East African Breweries Ltd (EABL).
Licensed dealing members
through whom investors can trade
are:
1.
Tanzania Securities Limited
2.
Rasilimali Limited, Solomon
3.
Securities Limited
4.
Orbit Securities Co. Limited
5.
Vertex International Securities
Limited
6.
Core Securities Ltd.
For
more information on the Dar es
Salaam Stock Exchange please go to
their website,
www.darstockexchange.com
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