DSE equity turnover up 50 pc

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) week equity turnover has increased by 50.3 per cent, pushed up by CRDB Bank share trading.

The turnover for the week ending last Friday, went up to 4.53bn/- compared to 3.01bn/- in the previous week.

Alpha Capital Head of Research and Financial Analytics Imani Muhingo attributed the increase to activities on the CRDB counter, which regained its top mover spot after two weeks.

“Equity turnover on the CRDB counter went up more than eight times on a weekly basis, thanks to a pre-arranged block transaction…,” Mr Muhingo said on Monday through the firm’s weekly financial market digest.

The bank, one of the leading lenders in the market, moved 6.3million shares at 440/- in a pre-arranged deal. CRDB accounted for almost 80 per cent of the total turnover for the week, while the price gained 1.14per cent to 445/- mid-week, before falling back down to 440/- on Friday.

The next top mover was NMB Bank, another leading bank in the country, which accounted for 15.4 per cent of the total equity turnover for the week.

Similarly, NMB saw a pre-arranged block transaction of 100,000 shares traded for 4,660/- per share.

Despite the block transaction, turnover on the NMB counter dropped by 62 per cent on a weekly basis, considering a block transaction involving 350,000 shares in the week before.

The other notable movers include Tanga Cement (TCCL), Twiga Cement (TPCC) and National Investment Company Ltd (NICOL). Collectively, the aforementioned counters accounted for 3.8 per cent of the total equity turnover for the week.

A somewhat conventional trend since mid-2022, foreign outflow was apparent during the week under review.

Zan Securities Chief Executive Officer Raphael Masumbuko said foreign investors continue to remain bearish, resulting in a net outflow of 3.4bn/- within the week.

“This shift in sentiment was primarily driven by concerns related to foreign exchange issues,” Mr Masumbuko said through the firm’s weekly wrap-up report.

Foreign investors accounted for 77.4 per cent of the total divestments during the week and 0.1 per cent of the total investments. The balance on both sides was accounted for by local investors.

Given the block transactions and share of turnover of CRDB and NMB last week, it seems, for yet another week, foreign investors disposed of ownership in the two banks while locals purchased the stakes, maintaining a rather sufficient local absorption capacity that sustains a bullish market despite consistent foreign outpouring.

The Tanzania Share Index (TSI) gained 10.05 points equivalent to 0.23 per cent of the domestic market capitalisation. The TSI closed the week at 4,305.10 points while the domestic market capitalisation closed at 11.39tri/-.

The TSI was lifted by five counters which saw their prices appreciate, while one counter saw price depreciation.

The weekly top gainer, for the fourth week in a row, was TCCIA Investment Company Ltd (TICL) which saw its price climb 7.7 per cent. The counter closed the week for 210/- from 195/- the week before. The counter began a rally in mid-September following the rights issue announcement in August.

In the last month alone, the price of TICL gained 35.5 per cent as investors digest the rights issue possibilities and objectives thereof.

According to Orbit Securities weekly synopsis, Twiga Cement (TPCC) and Tanga Cement (TCCL) both saw their prices gain 2.4 per cent and 2.2 per cent, respectively.

Other notable performers included NICOL, which saw a gain of 1.96 per cent and NMB, with a 0.42 per cent increase in share price.

In contrast, Swissport was the sole underperformer, shedding 10 per cent of its share price within a week.

In response to these developments, the TSI surged by 10 points, capitalising on the positive trend observed in most of the domestically listed stocks.

Regarding market participation, domestic investors accounted for the majority of share purchases, while foreign investors continued their trend of selling.

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