DSE foreign outflows narrow
DAR ES SALAAM: FOREIGN outflows narrowed on the Dar es Salaam Stock Exchange (DSE) during the week ended last Friday, offering a modest reprieve to market sentiment as external selling pressure eased sharply from the previous week. The improvement came even as overall market performance remained mixed, with equities facing selective price corrections across key counters.
Zan Securities Advisory and Research Manager Isaac Lubeja told ‘Daily News’ on Monday that foreign investor activity remained negative for the week ending last Friday, representing an improvement of 61.83 per cent.
“The reduced level of foreign selling pressure suggests easing external investor exits, although the market continues to rely heavily on domestic participation,” Mr Lubeja said.
The net foreign outflows narrowed to 2.18bn/- compared to outflows of 5.70bn/- recorded in the preceding week.
“The recent reduction in net foreign outflows may also provide near-term support to sentiment if external selling pressure continues to ease,” he said.
However, Zan Securities said, foreign investor participation is expected to remain cautious amid global market uncertainties and portfolio rebalancing trends across frontier markets. During the week under correspondent the DSE recorded improved trading activity with total market turnover rising by 16.17 per cent to 11.67bn/- from 10.04bn/- recorded in the previous week.
Trading volumes also advanced by 11.31 per cent to 3.57 million shares, indicating sustained investor participation across selected counters. Despite the increase in activity, market capitalisation metrics continued to soften, reflecting price declines in several large-cap stocks. Market data show that CRDB Bank emerged as the dominant traded counter during the week, accounting for 49.98 per cent of total market turnover after recording 9.48bn/- in traded value.
NMB Bank followed with a 17.49 per cent share, while Tanzania Breweries contributed 15.56 per cent of weekly turnover.
“Tanzania Cigarette Company (TCC) and NICOL also ranked among the most actively traded counters, underscoring continued liquidity concentration within banking and blue-chip stocks,” Mr Lubeja said.
On the gainers’ side, Precision Air (PAL) led the market after climbing 12.35 per cent to close at 455/- per share. Vodacom Tanzania gained 2.72 per cent, while Nation Media Group rose 1.85 per cent. He said TCC and Maendeleo Bank also posted modest gains amid selective bargain hunting and renewed investor appetite for fundamentally resilient counters.
On the losing side, Mwalimu Commercial Bank recorded the steepest decline, shedding 33.33 per cent to close at 1,560/- per share, amid weak bid support and profit-taking pressure. TaTePa (TTP) fell by 9.09 per cent, while Kenya airways (KA), MUCOBA and Swissport Tanzania declined by 7.69 per cent, 7.63 per cent and 7.59 per cent respectively.
“The losses reflected subdued liquidity conditions and cautious sentiment in relatively less active counters,” he said. Overall, Zan said, the market outlook remains cautiously optimistic. Improved liquidity conditions, strong demand for fixed income instruments, and ongoing dividend activity are expected to support investor engage.
