DSE stocks close higher as investors assess earnings

The Dar es Salaam Stock Exchange (DSE) equity market is expected to outperform investors’ expectations this week.

The analysts’ projection banked on last week’s performance spiced by the demand registered year to date following stellar results of financial firms.

Vertex International Securities Chief Executive Officer Mateja Mgeta told Daily News the market recorded a positive performance to echo their last week’s forecast as foreign investors’ activity increased.

“We forecast the trend to continue [this] week as we expect financial counters to continue to outperform surpassing investors’ expectations,” Mr Mgeta said.

The equity market during the week under review, went up to over 264 per cent to 2.48bn/- while attracting a foreign net inflow of 46.06m/-.

Alpha Capital Head of Research and Financial Analytics, Imani Muhingo, said the market was still dominated by local investors who accounted for an average of 68.8per cent participation, “thanks to the awakening and absorption of foreign sales since the beginning of last year”.

Nonetheless, local investors were net sellers during the week ending last Friday, equivalent to a mere 1.85per cent of the total turnover.

Alpha Capital’s weekly Financial Market Digest showed that six counters were on the green last week, while no counter saw a red line for the week.

The leading gainer on DSE year-to-date was CRDB with 7.84 per cent to 550/-. Year-to-date, the stock has surged by an impressive 96 per cent, with a Price Earnings (PE) ratio of 4.07x.

CRDB, last year, paid a dividend of 36/- per share.

“This year, we estimate the dividend to be around 47/- per share, which would generate an estimated yield of 8.5per cent based on current prices,” Orbit Securities said in its weekly synopsis yesterday.

CRDB was followed by NICO closing at 5.06 per cent to 420/-, NMB also closing at 3.49 per cent to 3,560/-, while DSE came fourth with 3.41 per cent 1,820/-, and DCB making fifth with 3.03 per cent to 170/-.

Also, the domestic index – Tanzania Share Index (TSI) gained 1.55 per cent 4,176.27 points during the week and 7.4 per cent since the beginning of the year.

On the other hand, the All Share Index (DSEI), which includes cross-listed counters from Nairobi Securities, was down 0.19per cent 1,869.32 points and 0.67 per cent during the week and year to date respectively.

The DSEI drop was attributed to the dropping Kenyan market as foreign investors limit participation in emerging markets.

Banks, Finance and Investment (BI) went up by 5.22 per cent to close at 4,242.98 points, up as CRDB, NICO, NMB, DCB, and DSE saw an increase in counter prices.

Industrial and allied (IA) closed at 5,079.67 points, a gain of 0.02 per cent as TCCL counter prices appreciated and Commercial services (CS) closed at 2,161.21 points seeing a 0.00 per cent change.

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