DAR ES SALAAM: DURING the trading week ending on December 27th, the Dar es Salaam Stock Exchange (DSE) saw a decrease in turnover compared to the prior week.
The total market turnover decreased to 10.038bn/-, reflecting a 19.28 per cent downtick from the previous week’s 12.436bn/-.
The pre-arranged board registered some activities as DSE and TCC recorded block trades.
Throughout the week, TCC dominated trading activities, representing 73.17 per cent of the total market turnover, followed by DSE at 19.17 per cent and CRDB at 5.13 per cent. DSE was the top gainer for the week appreciating by 1.69 per cent reaching 2,400/- per share.
CRDB gained 1.54 per cent to close off the week at 660/- per share. TCCL gained 1.12 per cent closing off the week at 1,800/- per share. TPCC was the top loser for the week depreciating by 6.75 per cent to reach 3,040/- per share.
DCB lost 3.57 per cent concluding the week at 135/- per share. In terms of market capitalisation, there was a general decrease in the size of the markets, with total market capitalisation decreasing by 0.67 per cent to 17.582tri/- by the week’s end. Similarly, domestic market capitalisation decreased by 0.09 per cent, reaching 12.109tri/-.
Key benchmark indices
- All Share Index (DSEI) closed at 2,106.58 points decreasing by 0.67 per cent.
- Tanzania Share Index (TSI) closed at 4,571.92 points decreasing by 0.09 per cent
Sector Indices
- Industrial & Allied Index (IA) closed at 4,956.15 points, down by 0.68 per cent
- Bank, Finance & Investment Index closed at 5,754.55 points, up by 0.581 per cent
- Commercial Services Index closed at 2,138.48 points, unchanged from the previous week.
DCB Commercial Bank plc rights issue public offer results and allocation announcement
DCB Commercial Bank Plc hereby announces that the Capital Markets and Securities Authority (CMSA), in the exercise of its mandates under the Capital Markets and Securities Act (Chapter 79 of the Laws of Tanzania) on 11 October 2024 approved the Prospectus in respect of DCB Commercial Bank Plc to raise 10.74bn/- by way of Rights Issue of 97,646,913 ordinary shares at a price of 110/- per share at a ratio of one new ordinary share for every one share held.
The Rights Issue was opened on Monday, 11th November 2024 and closed on Friday, 06th December 2024. Following the closing date, DCB is pleased to announce that it received applications for the Rights Shares worth 10.74bn/- as planned, representing a success rate of 100 per cent.
The listing and commencement of trading at the DSE will be on 30th December 2024. Highlights: Debt Market Primary market On December 24, 2024, the central bank was in the market to offer treasury bills to investors.
The offerings included 900m/- for the 35-day maturity Treasury bill, 1.9bn/- for the 91-day T-bill, 2.9bn/- for the 182-day T-bill and 120.45bn /-for the 364-day T-bill.
In this auction, demand was weak for the 35-day bill, it did not receive any subscription and this continues to show investors preference for longer term maturities.
The 91-day bill was oversubscribed with a subscription rate of 105.3 per cent, the 182 bill by 137.93 per cent and the 364-day bill was also oversubscribed receiving a subscription rate of 101.99 per cent from investors. The 364-day bill saw an increase in the weighted average yield by 4.04 basis points since the last auction from 12.9539 per cent to 12.9943 per cent in this auction.
The price floor was slightly lowered from 87/90 to 87/75 as the central bank allotted more than what was offered in this auction.
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The inflation rate was recorded at 3.0 per cent in November. Secondary market During the week ending on December 27th, market activities saw a decrease compared to the previous week.
Overall turnover decreased by 66.84 per cent, from 100.3707bn/- to 33.2864bn/-. However, there was a notable increase in the number of trades, rising from 80 to 84.
Trading activities primarily focused on the long-end of the yield curve, with the 20- year and 25-year bonds traded contributing to 99.93 per cent of the total turnover. In the corporate bond segment, there was a decrease in activity compared to the previous week.
NMB corporate bond NMB-2023/26.T1 recorded four trades totalling 10 m/- at an average price of 90.1905. NBC corporate bond NBC-2022/27.T1 recorded one trade with a face value of 13m/- at a price of 87/-.
Outlook: Equities The equity market recorded robust trading activity in December, with a total trading volume of 45.4bn/-—the highest monthly volume of the year. However, the domestic market experienced a 0.79 per cent decline in value during the same period.
Despite the high trading volume, this contraction is largely attributed to year-end sell-offs as investors sought to free up liquidity for seasonal spending. Nevertheless, this presents a compelling opportunity for investors to acquire high-quality stocks at attractive valuations.
