MARKET DATA REVIEW: Know basic investment skills on shares

>If an investor had invested similar amount of money across 14 domestic listed companies on the Dar es Salaam Stock Exchange (DSE), the annualized capital gain return would have been 4.5 per cent. As the table below indicates – share valuation for some companies have grown up above 30 per cent while a few companies have lost – these are the normal workings of the market.

>At the heart of investment, particularly investment in listed shares or any other such investable asset classes is the simple question: is the investment rational? The answer to this question might not be as crystal clear or self-evident in some cases.

>Why does a company issue shares? Why would the founders of businesses be willing to share the business profits and business secrets with other people when they could keep these profits and secrets to themselves?

>Privatisation is the process of transferring ownership of a business, enterprise, agency, public service, or public property from the public sector (a government) to the private sector.

There are two major encouraging statements that came to our attention recently, these statements came from the government: (i) the possibility of repossession of previously privatised state owned entities that were sold to some investors; and (ii) state owned entities, agencies and parastatals are now required to refocus on becoming more efficient and raise their financial needs from the local financial market.

Recently, the Dar es Salaam Stock Exchange (DSE) has been taking specific measures to address some of our specific local needs and challenges – it doesn’t serve better for any of us that after more than 15 years since the operationalization of the stock exchange in our economy, it remains just a superfluous high level concept, neither has it been understood nor efficiently used by our local communities to address some of their long-term capital needs on one side or investment...

It is fairly expected that, we as humans in our own ways should always be in the process of creating a good society — a society where citizens are largely satisfied, one where people are happy and thrive in their undertaking. A good society is one that values decency, responsibility, justice, tolerance and where natural human rights are observed.

>This week there is an annual Association of  Stock Exchanges in Africa conference hosted by the Nairobi Securities Exchange.

>Back in 2010 two pieces of legislation (Mining Act of 2010 and the Electronic and Postal Communication Act of 2010) were passed by our Parliament and got signed by the president with all the optimism that these laws entailed to fulfill, including some of the dream of local citizens, especially the aspect of the requirement that companies with Special Mining Licences and those operating in the telecommunication sector will be required to offer shares to the public and subsequently list on...