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Tanzania: Bond Trading Boosts Dse Turnover By Well Over 50pc

tanzania bond trading boosts dse turnover by well over 50pc

Dar es Salaam — Liquidity at the Dar es Salaam Stock Exchange (DSE) rose by 53 percent in March, propelled by a rise in trading of government securities which offset a minimal drop in shares trading.

Market data shows that a total of Sh192.6 billion was realised in total turnover as of March 26, up from Sh126.06 billion that was realised during the month of February.

Out of that sum, Sh186.12 billion was realised through trading of government securities (Treasury Bonds) in March, up from Sh119.46 billion realised in February.

On the other hand, the value of traded shares dropped slightly – to Sh6.48 billion – in March compared with Sh6.6 billion in February.

CRDB Bank Plc accounted for Sh2.69 billion, representing 41.6 percent of the total turnover that was realised in March.

With Sh1.7 billion, NMB Bank Plc was in the second slot while TBL Plc, TCC, DSE Plc, Jatu, Twiga, Swissport, Nicol, Tanga Cement and Vodacom followed in that order.

On weekly basis, the equity market posted a slow activities during the week to Friday, March 26, as the country mourned the passing on of President John Magufuli, 61.

The DSE recorded a weekly turnover of Sh111.34 million which is a 96.7 percent drop compared to last week’s turnover of Sh3.44 billion.

Dr Magufuli died on March 17 and was laid to rest on Friday, March 26.

The government announced two national holidays (Monday, March 22, and Friday March 26) in honour of the departed leader.

This had an impact on the number of trading days at the bourse.

The volume of shares traded decreased to 207,990 last week from 760,823 shares that were traded in the week ended March 19, 2021.

However, analysts remain optimistic that investors’ participation will rise during the coming weeks and months.

“We expect more improvement and participation on the bourse this coming week,” said Zan Cecurities Limited chief executive officer Raphael Masumbuko.

During the week, CRDB emerged as the top market mover, recording 28.9 percent of total turnover followed by DSE and Twiga with 23.37 percent and 16.51 percent respectively.

Total market capitalisation increased by 0.11 percent to Sh15.58 trillion and domestic market capitalisation posted a decrease of 0.01 percent to close at Sh9.24 trillion.

The Tanzania Share Index (TSI) closed at 3,518.08 points, down by 0.01 percent while the All-Share Index (DSEI) increased by 0.11 percent to close at 1,875.85 points.

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South Africa: JSE Rally – It’s Prudent to Factor in What Could Spoil the Party

south africa jse rally its prudent to factor in what could spoil the party
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The JSE continues to outpace its developed market peers in a rally that has – including a few pullbacks – added 77% to the value of the exchange since last March’s market meltdown. However, with most of the good news driving the recovery emanating from beyond South Africa’s shores, can it continue?

Optimism over strong recoveries in developed market economies, including the US and most of Europe, as vaccine programmes are rolled out, has helped fuel strong equity market performances this year. So, too, has the massive stimulus pumped into economies by central banks, including the Federal Reserve.

While the JSE’s gains seem to belie local economic prospects and the slow pace of vaccinations, it is benefiting, to the full, from the global factors.

The exchange’s broad-market All Share Index rallied more than 3% on Friday, and continued rising on Sunday, taking its year-to-date gain to over 13%. The blue-chip Top 40 Index, which includes the exchange’s most valuable shares, shows a similar gain.

As has been the case for most of the year, resource stocks have led the charge, with the JSE’s Resources 10 Index soaring 5%.

Chantal Marx, head of investment research at FNB Wealth and Investments, said…

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Egypt: Bourse Indexes Show Mixed Performance

egypt bourse indexes show mixed performance
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The Egyptian Exchange (EGX) indexes showed mixed performance at the end of Monday’s trading session, amid selling operations performed on the leading stocks, against purchases of small- and mid-cap stocks.

The market capital gained EGP 3.2 billion to reach EGP 652.5 billion, after transactions exceeded EGP 2 billion.

The EGX 30 benchmark index went down by 1.19% to register 10,738.42 points.

The EGX 70 EWI index of the leading smaller and mid-cap enterprises increased by 2.39% to stand at 1,952.41 points.

The all-embracing EGX 100 index went up by 1.54% to settle at 2,900.7 points. MENA

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Tanzania: Envoys Told to Seek Markets for Tanzanian Products

tanzania envoys told to seek markets for tanzanian products
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AMBASSADORS representing the country abroad have been directed to plan, participate and seek opportunities that will enable various Tanzanian products to secure reliable markets in their respective countries.

The directive was issued by Minister of Foreign Affairs and East African Cooperation Prof Palamagamba Kabudi, when talking to ambassadors representing Tanzania abroad.

He said that the ruling party (CCM) manifesto clearly articulates economic diplomacy, while strengthening the country’s voice and image on the fields of regional and international relations.

Prof Kabudi added that in order to achieve this, ambassadors are required to strengthen Tanzania’s participation in other international organisations including, Indian Ocean Rim Association, Indian Ocean Tuna Commission, South South Commission and South West Indian Ocean Fisheries Commission.

He also asked the ambassadors to implement the instructions of the President of Zanzibar and Chairman of the Revolutionary Council, Dr Hussein Mwinyi that he gave while inaugurating the House of Representatives, in which, he demanded the fully exploitation of Blue Economy.

Prof Kabudi pointed out that deep sea fishing was beneficial to the people; especially in increasing revenue, employment and economic growth.

Also Prof Kabudi said the government recognises and appreciates the contribution made by Tanzanians living abroad (Diasporas) in the development of the country and directed the ambassadors to start and improve diaspora data as well as encourage them to establish their own communities.

“I am aware that the work is ongoing and we currently have approximately 98,658 diaspora data and there are 77 diaspora communities. I would like to stress on the importance of our ambassadors improving and speeding this process by devising various ways to register them,” Prof Kabudi emphasised.

The meeting between the minister and ambassadors representing the country was also attended by the Deputy Minister Dr William Tate Ole Nasha, Permanent Secretary Brigadier General Wilbert Ibuge, together with directors, heads of departments and units of the ministry.

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Nigeria: Naira Gains At Official Market

nigeria naira gains at official market
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The currency remained unchanged at the black market.

The Naira appreciated marginally against the U.S Dollar at the I&E window of the foreign exchange market on Monday, data posted on the FMDQ Security Exchange where forex is officially traded showed.

However, the local unit remained unchanged at the black market.

The domestic currency closed at N409.13 at the trading session of the I&E window, this represents N0.87 or 0.21 per cent increase from N410.00, the rate at which it closed at the previous session on Friday, last week.

Naira experienced an intraday high of N400.00 and a low of N410.50, before closing at N409.13 on Monday.

The slight gain in Africa’s most populous country’s currency became pronounced as turnover plummeted by 57.42 per cent, with $30.84 million recorded as against the $72.43million posted on Friday, last week.

However, naira remained stable at the unofficial market on Monday, data posted on abokiFX.com, a website that collates parallel market rates in Lagos showed.

According to data posted, the naira closed at N485.00 on the black market on Monday, the same rate it exchanged hands with the greenback in the previous session on Friday last week.

By this, the spread between the unofficial market and the I&E window exchange rate is pegged at N75.87, which translates to a gap of 15.64 per cent.

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Nigeria: Stanbic IBTC, CAP, Lafarge Top Stocks to Watch This Week

nigeria stanbic ibtc cap lafarge top stocks to watch this week
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Nigerian stocks were up by N436.250 billion in the week that just went by.

Nigerian stocks were up by N436.250 billion in the week that just went by, buoyed by a number of impressive earnings report and corporate actions like dividend declaration that strengthened investors’ sentiment.

Monday, Wednesday and Thursday’s sessions were upbeat while the rest of the week ended in loss, with the development and other trends shaping Premium Times Stocks to Watch.

Premium Times Stocks to Watch collates equities with potential for good return on investment.

We have assembled a range of stocks, adopting rigorous analytical approaches to save you the hassle of randomly picking equities for investment.

This is not a buy, sell or hold recommendation. You may have to involve your financial advisor before taking investment decisions.

STANBIC IBTC HOLDINGS PLC

Stanbic tops our list by virtue of its declaration of 1 for 6 bonus issue and a dividend per share of N3.60 for financial year 2020.

The Earnings Per Share (EPS) of the financial services group is N7.51, while its Price to Earnings (PE) ratio is 6.92.

CHEMICAL AND ALLIED PRODUCTS (CAP) PLC

CAP features on our list on the basis of its proposal of N2.10 dividend per share for financial year 2020.

The firm’s EPS is N1.85, while its PE ratio is 11.37.

LAFARGE AFRICA PLC

Lafarge makes our list for declaring a dividend of N1 per share for 2020. It has a Price-to-Earnings (PE) ratio of 11.22 and Earnings-Per-Share (EPS) of N1.92.

TOTAL NIGERIA PLC

Total appears on our list on the premise of its declaration of N6.08 per share dividend for last year. It has a PE ratio of 21.47 and an EPS of N6.62.

BETA GLASS PLC

Beta Glass features on our list on account of its board’s proposal of N1.04 per share dividend for the 2020 financial year. Its PE ratio is 7.99 and an EPS of N6.76.

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Ghana: SEC Extends Moratorium On Issuance of New Fund Management Licences

ghana sec extends moratorium on issuance of new fund management licences
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The Securities and Exchange Commission (SEC) has extended the moratorium on issuing new Fund Management licences for a further period of six months.

This is pursuant to section 3(i)(m) and 208 of the Securities Industry Act, 2016 (Act 929).

In a statement, it said “market operators, the investing, and the general public are hereby advised to visit the SEC’s website www.sec.gov.gh for any further clarification or information.”

The commission assured all market operators, investors, and the general public of its commitment to ensuring rigorous enforcement of all the rules for operators in the capital market.

“This is to promote the growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected,” the statement said.

SEC is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.

It also has the mandate to maintain surveillance over activities in securities to ensure orderly, fair, and equitable dealings in securities and to protect the integrity of the market in accordance with Sections 2, 3, and 208 of Act 929.

In November 2019, the SEC revoked the licences of 53 fund management companies.

This was after the affected companies failed to return client funds which remained locked up in, contravention of the investment rules.

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Nigeria: Nigerian Stocks Rise Further On Buy Pressure On Stanbic IBTC Holdings

nigeria nigerian stocks rise further on buy pressure on stanbic ibtc holdings

Twenty three gainers were recorded compared to 12 losers.

Nigerian stocks jump 0.53 per cent further Thursday as investors’ exuberance for and buy pressure on Stanbic IBTC Holdings shares drove trade, a day after the financial services group announced twin compensations for shareholders.

The group on Wednesday announced N3.60 per share final dividend and a bonus issue of one new share for every six held.

Gains by Stanbic IBTC shares contributed N29.870 million to market capitalisation as wireless operator MTN and UPDC REIT also lifted trade.

The insurance index emerged the day’s biggest riser of the five sectorial indices, advancing 0.81 per cent to 200.09 points.

Twenty three gainers were recorded compared to 12 losers, causing the market to close with a positive breadth.

The all-share index inched up by 207.36 points to close at 39,293.14, while market capitalisation leapt to N20.558 trillion.

Year to date, the index is down by 2.43 per cent.

TOP FIVE GAINERS

Wapic led gainers, appreciating by 10 per cent to close at N0.55. UPDCREIT grew by 9.80 per cent to end trade at N5.60. Pharma Deko went up by 9.63 per cent to N1.48. Neimeth rose to N1.95, notching up 9.55 per cent in the process. GSK completed the top 5, climbing up by 9.45 per cent to N6.95.

TOP FIVE LOSERS

Sovereign Trust Insurance topped the losers’ chart today declining by 8.33 per cent to close at N0.22. NPF Microfinance Bank shed 7.22 per cent to end trade at N1.80. Prestige fell to N0.41, losing 6.82 per cent in the process. Japaul Gold dipped to N0.43, recording 4.44 per cent depreciation. Dangote Sugar closed at N16.40, going down by 2.67 per cent.

TOP FIVE TRADES

229.417 million shares estimated at N3.780 billion were traded today in 4,016 deals, with liquidity dropping by 37 per cent.

Union Bank was the most active stock as 79.567 million of its shares worth N421.700 million traded in 29 deals. 19.276 million units of Union Bank shares priced at N598.972 million exchanged hands in 355 transactions.

Zenith had 12.085 million shares valued at N265.897 million traded in 382 deals. MTNN traded 10.072 million shares estimated at N1.613 billion in 157 transactions. Oando traded 9.512 million shares valued at N31.283 million in 157 deals.

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Zimbabwe: About Share Capital of Private Companies

zimbabwe about share capital of private companies

This articles touches on areas of interest to many entrepreneurs and executives. It is about ownership of a private company. Section 2 of the Companies and Other Business Entities Act (“COBE Act”) or (“the Act”) defines a share as a share in the capital of a company.

Share capital of a business is the part of a company’s capital that comes from the issue of shares.

The following pertinent areas as regards capital are explained.

Legal nature and requirement to have shares

According to section 95 of the Act:

A share issued by a company is a movable property and transferable in any manner provided for by the articles of the company or recognised by the Act or any other law,

Subject to section 304 (Transitional provisions) a share does not have a nominal or par value,

A company may not issue shares to itself

An authorised share has no rights associated with it until it has been issued:

Shares of a company that have been issued and subsequently acquired by that company or surrendered to it have the same status as shares that have been authorised but not issued.

Crucially, in terms of section 95(6), despite the repeal of the Companies Act (Chapter 24:03) effective February 2020 a share issued by a pre-existing company and held by a shareholder immediately before that effective date of the COBE Act, continues to have all of the rights associated with it immediately before the effective date, irrespective of whether those rights existed in terms of the company’s memorandum or articles, only subject to:

Subsequent amendments to the company’s memorandum or articles of association,

Operation of section 95(5).

Authorisation for shares

Section 96 applies. This section provides that a company’s memorandum:

Must set out the classes of shares, and the number of shares of each class that the company is authorised to issue.

Must set out, with respect to each class of shares, a distinguishing designation for that class and the preferences, rights, limitations and other terms associated with that class.

Section 96(2) provides that the authorisation and classification of shares, the number of authorised shares of each class, and the preferences, rights, limitations and other terms associated with each class of shares, as set out in a company’s memorandum, may be changed only by:

An amendment of the memorandum by special resolution of the shareholders, or

The board of directors in terms of section 96(3), unless the memorandum provides otherwise.

In terms of section 96(3), unless varied by the company’s memorandum provides otherwise, the company’s board of directors may:

Increase or decrease the number of a company’s authorised shares of any class,

Reclassify any unclassified authorised but unissued shares,

Determine the preferences, rights, limitations or other terms of shares in a class.

Preferences, rights, limitations and other share terms

These are provided in section 97 of the COBE Act. Most important is that section 97(3) requires that a company must always have ordinary shares.

Section 97(8) provides protection to dissenting shareholders whose rights might be materially and adversely affected by the amendment of a company’s memorandum of association.

Issuing of shares

Section 98 applies. For example section 98(1) provides that the board of directors may resolve to issue shares of the company at any time, but only within the classes, and to the extent, that the shares have been authorised by or in terms of the company’s memorandum, in accordance with section 96.

According to section 98(2) if a company issues shares that have not been authorised in accordance with section 96 or in excess of the authorised shares the issuance of those shares may be retroactively authorised in accordance with section 96 otherwise the share issue is a nullity to the extent that is exceeds any authorisation.

Subscription for additional shares in a private company

Section 99 applies. In terms of section 99(2) if a private company proposes to issue any shares other than as contemplated in section 99(1)(b), each shareholder thereof shall have a pre-emptive right to be offered and, within a reasonable time to subscribe for a pro-rata number of shares.

Consideration for shares

According to section 100(1) the board of directors may issue authorised shares only:

For the adequate consideration to the company as determined by the board of directors or,

In terms of conversion rights associated with previously issued shares.

According to section 100(3) the consideration for shares may be in money, in other tangible or intangible property, other rights having monetary value, a binding obligation to pay money or services previously performed.

The value of any non-monetary consideration shall be verified by an independent expert and approved by existing members.

This simplified article is for general information purposes only and does not constitute the writer’s professional advice.

Godknows Hofisi, LLB(UNISA), B.Acc(UZ), CA(Z), MBA(EBS,UK) is a legal practitioner / conveyancer with a local law firm, chartered accountant, insolvency practitioner, registered tax accountant, consultant in deal structuring, business management and tax and is an experienced director including as chairperson. He writes in his personal capacity. He can be contacted on +263 772 246 900 or [email protected]

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Nigeria: Nigerian Stocks Rebound On Renewed Interest in Top Firms

nigeria nigerian stocks rebound on renewed interest in top firms
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The benchmark index climbed 380.81 points to close at 39,085.78, while market capitalisation rose to N20.450 trillion at the end of trade.

Nigerian stocks recovered on Wednesday, trading 0.98 per cent up, as investors’ appetite for bellwethers lifted trade.

Blue-chip stocks like MTNN, Dangote Cement, Stanbic IBTC, Guinness, and Nigerian Breweries contributed tremendously to the positive performance.

Market breadth was positive as 20 gainers emerged against 16 losers.

The Consumer Goods Index was the day’s best performer of the sectorial indices, going up 0.73 per cent to 538 points.

The benchmark index climbed 380.81 points to close at 39,085.78, while market capitalisation rose to N20.450 trillion at the end of trade.

Year to date, the index is down by 2.94 per cent.

TOP FIVE GAINERS

Stanbic led gainers, growing by 9.99 per cent to close at N48.45, buoyed by its strong 2020 financial result and simultaneous declaration of dividend and scrip. NPF Microfinance Bank gained 9.60 per cent to close at N1.94. Cornerstone rose by 8.93 per cent to N0.61. Guinness leapt to N27.30, notching up 8.76 per cent in the process. Oando completed the top 5, climbing up by 8.68 per cent to N3.38.

TOP 5 LOSERS

MRS topped the losers’ table, declining by 9.70 per cent to close at N12.10. Wapic Assurance shrank by 9.09 per cent to end at N0.50. WAPCO tumbled to N20.90, losing 7.11 per cent. Africa Prudential dipped to N5.20, recording a 5.45 per cent loss. Livestock closed at N1.81, going down by 4.74 per cent.

TOP FIVE TRADES

In all, 361.903 million shares worth N5.702 billion were traded in 4,018 deals.

Union Bank was the most preferred stock with 79.346 million of its stocks worth N420.533 million traded in 39 deals. 72.620 million units of GTB shares priced at N2.259 billion exchanged hands in 485 transactions. Veritas Kapital had 50.247 million shares valued at N10.525 million traded in 21 deals. Ekocorp traded 20 million shares estimated at N120 million in one transaction. Zenith traded 16.675 million shares valued at N367.031 million in 405 deals.