Analysts say financial results will drive DSE activities

THE turnover of the Dar es Salaam Stock Exchange (DSE) is projected to increase in the coming weeks as companies start to release their quarter two financials.

The investors are banking on the firms’ good performance to make their next move to place investments where they will maximise their returns.

Vertex International Securities said in its weekly market review that it projected the turnover and volume to increase in the coming week, pushed by counters with stellar performance.

“We expect an increase in turnover and volume next week as financial counters such as NICO may drive up market activities, following the release of strong financial results,” Vertex said.

Last week trading activity decreased by 30.29 per cent to 550.72m/-, despite some counters to register price appreciations.

DCB Bank, according to Zan Securities market wrap up report, led the way with a remarkable surge of 7.14 per cent, closing at 150/- per share. SWISS followed after recording a 6.67 per cent increase to close last week at 1,600/- per share. NICO experienced a 5.56 per cent increase to 475/- per share. TPCC saw a 3.0 per cent increase to 4,120/-.

“Looking ahead,” Zan report said, “we anticipate heightened market activities in the upcoming weeks, as companies prepare to release their second-quarter financial reports. This is expected to generate increased interest and trading in the market.”

The banking sector saw an increase of 0.07 per cent where the Bank, Finance, and Investment Index closed at 3,932.18 points, while the industry and allied sector showed an increase of 0.30 per cent at 5,122.32 points and commercial services closed at 2,159.53 points which shows an increase of 0.20 per cent.

Both the All Share Index and the Tanzania Share Index (TSI) increased by 0.55 per cent and 0.21 per cent, respectively.

“These changes were primarily driven by an increase in prices of cross-listed shares and domestic counter prices,” Exodus Advisory’s weekly capital market report said.

On a quarterly basis, DSE saw positive developments during the second quarter of this year in terms of increased activities and market value of listed securities.

“The market saw a net positive growth on its domestic listings, while the total capitalization, which includes cross-listings from Nairobi, took a hit as the DSE continues to outperform the region,” Alpha Capital said in its weekly financial market digest.

The Tanzania Share Index (TSI), which exclusively represents domestic listed equities, slightly went up by 0.25 points to 4,091.81 points despite companies closing the quarter deep into ex-dividend periods. The growth is equivalent to 0.09 per cent of the domestic market capitalisation while the major movers of the first quarter saw a drop in prices in the second quarter.

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