DSE turnover rises by 114 per cent in November
Stock Market: The Dar es Salaam Stock Exchange posted a turnover of TZS 7.7 Bln in November, a 114% increase from October’s turnover of TZS 3.6 Bln.
Furthermore, the volume of shares traded increased to 15.3 Mln from October’s 6.5 million traded shares. The surge in turnover was ignited by third-quarter financial results posted by various listed companies in mid-November.
Most companies reported positive financial results enticing market participation to both retail and institutional investors. CRDB emerged as the most traded stock.
The counter accounted for 34% of the total volume and 70% of the total turnover. The stock continues to build on its reputation of being a retail investors’ favourite due to its liquidity. CRDB supplements its liquidity with strong fundamentals as the company has consistently reported strong financial results quarter by quarter. Year to date the stock is up by 58%.
Other active counters in November included NMB which contributed 20% to the total turnover and 22% to the total volume. Lastly, Twiga Cement (TPCC) accounted for 5% of the total turnover and 9 % of the total volume.
Benchmark stock indexes ended the month with mixed signals. The All-Share Index (DSEI) shed a marginal 0.01 point. Major contributors to the outcome were cross-listed stocks.
Jubilee Holding (JHL) closed the month 14% lower, and National Media Group (NMG) and East African Breweries (EABL) both shed 1.6%. On the other hand, the Tanzania Share Index (TSI) which comprises domestic listed stocks collected 32 points, closing the month on the green.
At the close of the month, the total and domestic market caps stood at TZS 15.6 Tril and 10.2 Tril, respectively.
NMB emerged as a top gainer in November, closing the month 6.3% higher. The stock continues to stamp its position as an investors’ money maker following a surge in its stock price by 50% year to date. Another notable performer was Twiga Cement which closed the month 2.8% per cent higher.
The counter is among the most consistent performers in the bourse throughout the years. Stocks closing in the red included; MBP (-2.8%), DCB (-3.2%), DSE (-5.9%), TCCL ( -9.2%), SWISS (-15.7%) and TICL (-21%). Corporate Bond Market November has been an active month for the corporate bond market. National Bank of Commerce (NBC) issued its first corporate bond to be listed in the bourse, while KCB issued a Sukuk.
The National Bank of Commerce expects to list the bond on the 15th of December 2022. The bond named “Twiga” matures in 5 years, paying a 10% fixed coupon rate, semiannually. Its offer window closes today (6th December 2022). It is the first of the non-taxable corporate bonds in Tanzania following amendments in the 2022 Finance Bill.
The minimum amount to be invested is TZS 500,000, and anyone can invest through NBC branches or any of the licensed stockbrokers. On the other hand, the exchange expects to list the first Sukuk in its corporate bond segment on the 16th of December 2022. KCB (Tanzania) is the issuer with the proceeds directed towards supporting its Islamic Banking Division (KCB Sahl Banking).
Sukuks are different from conventional bonds as they represent ownership stakes in assets or business activity rather than representing debt obligations as in conventional bonds.
The underlying assets to be financed by a Sukuk issuance are shari’ah compliant in both their nature and use while normal conventional bonds can finance any legal project.
Furthermore, sukuks encourage profit sharing avoiding interest rates which are the norm in conventional bonds. KCB Tanzania aims to raise TZS 10 Billion, and the proceeds shall be invested under the mudaraba (profit sharing) contract. The minimum amount to be invested is TZS 500,000, and the indicative profit rate is 8.75% per annum. The Sukuk matures after 3 years.
The subscription window for interested investors closed on Monday.
orbit@orbit.co.tz; ammi.mwa@orbit.co.tz
