Stock market analysts have said that the Dar es Salaam Stock Exchange (DSE) might fail to register a Santa Claus rally due to low performance during this festive season.
The analysts’ worry is centred on the last two weeks’ trading pattern where investors seemed to be reluctant to transact during this holiday season.
The Advisory and Capital Markets at Vertex International Securities Manager Ahmed Nganya said on the week to Christmas there was a single price movement recorded on NMB share that rose by 3.42 per cent to close last Friday trading at 3,020/-.
“Other domestic counters had a quiet week with no price movement,” Mr Nganya said through Vertex’s weekly market review yesterday.
A Santa Claus rally is a calendar effect that involves a rise in stock prices during the last five trading days in December and the first two trading days in the following January.
Also equities market recorded unsatisfactory performance last week, reflecting investors’ reluctance in transacting during holiday seasons.
“We expect a similar performance next week as we think investors are looking ahead to 2023,” Mr Nganya said.
NMB was a top market mover last week, recording 87.36 per cent of total market turnover followed by Twiga Cement with 5.60 per cent and CRDB with 4.20 per cent.
Equities Market recorded an unimpressive performance this week as investors look ahead to next year.
The weekly turnover declined to 762.65m/- and volume dropped to 0.34 million shares, a far cry from the previous week’s numbers.
Total market capitalization increased by 0.54 per cent to 15.618tri/-, while the domestic market capitalization remained unchanged at 10.203tri/-.
On other hand, the All Shares Index (DSEI) increased by 0.54 per cent to close at 1,874.06 points and Tanzania Shares Index (TSI) went up by 0.49 per cent to close at 3,878.93 points.
Banks, Finance and Investment (BI) closed at 3351.49, 1.91per cent up. Industrial & Allied (IA) and Commercial Services (CS) remained unchanged at 5,022.79 and 2,147.73 points respectively.
