DSE traded value, domestic market cap up

DAR ES SALAAM: The Dar es Salaam Stock Exchange (DSE) exhibited positive performance last week as both traded value and domestic market capitalisation demonstrated an upward trend.

According to Zan Weekly Wrap-ups, the cumulative value of trades surged to 1.194bn/-, marking a significant increase of 100.29 per cent compared to the preceding week.

Prominent stocks that garnered notable trading value during this week were CRDB, Voda and NMB, contributing to 67.55 per cent, 17.17 per cent, and 8.8 per cent of the overall market turnover, respectively. Among domestic stocks, two stocks observed positive price movement.

Tanga cement led the way with an impressive surge of 3.26 per cent, concluding the week at 1,900/- per share. This boost was attributed to the impending acquisition by Scancem.

Orbit Securities said in its weekly synopsis that the Tanga cement top-performing stock was “noteworthy considering the ongoing uncertainty surrounding its acquisition deal”.

Last year, the Tanga-based-cement producer, incurred a loss of 22bn/-, putting an end to its previous profit streak that had resulted in a 3.0bn/- profit in 2021.

NMB also displayed a positive trajectory with a 2.22 per cent rise, closing the week at 3,680/- per share.

However, there were also instances of decline among domestic counters. CRDB experienced a drop for the second consecutive week, reaching 460/- per share, equating to a 1.08 per cent decrease.

NICO faced a similar fate, declining by 1.03 per cent to reach 480/- per share.

In terms of market capitalisation, there was a slight decrease of 0.67 per cent in the total market capitalisation, reaching a value of 14,911.25bn/-.

On the other hand, the domestic market capitalisation managed a modest gain of 0.28 per cent, concluding the week at 10.92tri/-.

All Share Index (DSEI) closed at 1,788.18 points decreasing by 0.67 per cent.

Tanzania Share Index (TSI) closed at 4,130.97 points increasing by 0.41 per cent.

Orbit report showed that investor participation has been notably influenced by domestic investors, a trend that has persisted for nearly a year.

“This shift in behaviour stems from the impact of global rate hikes, which prompted investors to seek safer returns in global financial markets,” Orbit said.

Additionally, the emerging concern of currency risk across African nations has further hindered portfolio investments from foreign investors.

Despite a decline in activity within the equity market, it’s important to note that the market remains undervalued, yet holds significant growth potential.

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