DSE rallies despite Christmas celebrations

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) continues to rally despite approaching the end of the year when activities are normally subdued.

The bourse saw a significant increase in turnover, rising from 3.74bn/- to 11.07bn/- in seven days to last Friday pushed partly by the pre-arranged block trade deal of 2.5 million TICL shares.

Vertex International Securities said in its weekly market review that the volume of shares traded saw a dramatic increase of 139.28 per cent, rising from 8.55 to 20.45 million shares.

“Despite this being the third week of the last month of 2023, the market still looks promising,” Vertex said in the report on Sunday.

The exchange was primarily dominated by CRDB Bank, NMB Bank, and TICL in both turnover and volume, it is expected to maintain its positive momentum into the next week.

“We anticipate, TICL and NICO, in particular, to continue their resilient Performance,” the report said.

CRDB led the market with the highest turnover and volume, achieving 4.97bn/- or controlling a lion’s share of 44.89 per cent and 10.9 million shares or 53.3 per cent respectively.

NMB followed closely with a turnover of 3.6bn/-, accounting for 32.58 per cent of the total. TICL also made a notable impact with a significant turnover of 1.58bn/- or 14.29 per cent.

In terms of price movements, Maendeleo Bank Plc (MBP) saw a notable rise of 8.93 per cent, moving from 280/- to 305/-.

NICO experienced a 3.30 per cent increase, closing at 470/-, up from an opening of 455/-.

On the other hand, Vertex report showed that TICL faced the most significant price drop, falling 7.32 per cent to close at 190/- from a week ending last Friday from an opening of 205/-.

Additionally, DSE saw a decrease of 2.15 per cent, closing at 1,820/- from an opening of 1,860/-.

The total market capitalisation rose slightly by 1.0 per cent from 14.5tri/- to 14.6tri/-. The domestic market capitalisation decreased by 0.21 per cent.

Additionally, Orbit Securities said in its weekly synopsis that the manufacturing sector witnessed impressive growth in Tanga Cement, which saw its stock price soar by 90 per cent in the last twelve months.

“This surge was driven by investor speculation about its acquisition deal, finalised in the fourth quarter.

“Despite this commendable performance, the company didn’t declare dividends this year due to ongoing losses in its financials,” Orbit said.

Another standout performer this year in the manufacturer sector was Twiga Cement which surged by 15 per cent, and investors received a dividend of 390/- per share.

“This was one of the most stable stocks in the exchange,” Orbit said.

However, other manufacturing stocks remained relatively stagnant, such as TBL and TCC, while some witnessed declines, like TOL Gases, which dropped by 4.0 per cent despite paying a dividend of 50/- per share.

“Shifting focus to the service sector, encompassing companies like Vodacom, Swissport, and Precision Air, we observed minimal movement in their share prices as they remained mostly unchanged,” Orbit report said.

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