DSE investors’ bullish ahead of Q3 earnings
DAR ES SALAAM: INVESTOR optimism is building across the Dar es Salaam Stock Exchange (DSE) as the market enters the final stretch before the release of third-quarter (Q3) earnings reports.
With a number of listed banks expected to announce results later this month, traders are repositioning portfolios in anticipation of the updates.
Zan Securities Advisory and Research Manager, Mr Isaac Lubeja said the current trading pattern suggests that investors are selectively positioning ahead of the results season, with several counters showing renewed momentum.
“As we move into midOctober, we expect a period of mild volatility across the equity market as listed companies prepare to release their quarter three (Q3) earnings.”
“Anticipation around corporate results is already feeding into investor sentiment, with a general sense of optimism buoying several counters in recent sessions,” said Mr Lubeja.
He said the Industrial and Allied and Commercial Services segments are expected to sustain upward momentum, supported by investor confidence in companies that have demonstrated resilience in earnings performance.
“We’re seeing renewed interest in counters that have proven to maintain profitability despite the challenging operating environment,” said Mr Lubeja: “These are likely to continue driving activity in the near term.”
On the price movement front, Tanzania Tea Packers (TaTePa) stood out as the week’s top gainer. Its share price appreciated by 60.98 per cent, closing at 330/- per share.
CRDB Bank followed, recording a 12.28 per cent increase, closing the week at 1,280/- per share.
However, the banking segment, which recorded strong price appreciation earlier in the year, is now experiencing a consolidation phase as investors rebalance portfolios in preparation for earnings disclosures.
“Banking stocks may continue to consolidate as investors take a more measured approach before Q3 results,” said Mr Lubeja.
On the loser’s side Tanga Cement (TCCL) recorded a decline, with its share price falling by 13.56 per cent to 2,040/-.
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It was followed by Tanzania Cigarette (TCC), which shed 5.75 per cent to close at 12,620/- per share and Mwalimu Commercial Bank (MCB) which shed 2.7 per cent to close at 360/- per share.
On the performance front, Alpha Securities weekly market digest shows that TaTePa led the gainers, which was an “unusually sharp move that likely reflects thin liquidity amplifying price changes”.
The Alpha report shows that for the week ending last Friday, market activity on the DSE reflected renewed investor engagement, as equity turnover rose by 32.39 per cent to 15.66bn/-, even as trading volumes remained largely unchanged.
The recovery was led almost entirely by CRDB Bank, which accounted for an outsized 85.17 per cent of total market turnover, equivalent to 13.34bn/-, underscoring the growing dominance of a single counter in shaping overall market liquidity.
The remaining of the top five movers were Vodacom (883m/-), TCCL (497m/-), NMB (368m/-) and NICO (130.47m/-).
“While 20 counters participated in trading during the week, concentration risk remains deeply embedded and was more pronounced this week,” Alpha said.
