DSE turnover jumps 164pc in one week

DURING the trading week ending on December 06th, the Dar es Salaam Stock Exchange (DSE) saw an increase in turnover compared to the prior week.

The total market turnover increased to 19.074bn/-, reflecting a 164 per cent uptick from the previous week’s 7.231bn/-.

The pre-arranged board registered some activities as TPCC, CRDB, NMB and TBL recorded block trades. Throughout the week, CRDB dominated trading activities, representing 57.55 per cent of the total market turnover, followed by TBL at 27.28 per cent and NMB at 13.4 per cent.

NMB was the sole gainer for the week appreciating by 0.93 per cent reaching 5,400/- per share. DCB was the top loser for the week depreciating by 12.9 per cent to reach 135/- per share. MBP lost 8.82 per cent reaching 310/- per share, AFRIPRISE depreciated by 6.38 per cent reaching 220/- per share.

TOL lost 2.99 per cent to reach 650/- per share and TCCL lost 2.08 per cent concluding the week at 1,880/- per share.

In terms of market capitalisation, there was a general decrease in the size of the markets, with total market capitalisation decreasing by 0.79 per cent to 17.942tri/-by the week’s end.

However, domestic market capitalisation increased by 0.12 per cent, reaching 12.221tri/-.

Key benchmark indices

• All Share Index (DSEI) closed at 2,149.75 points decreasing by 0.79 per cent.

• Tanzania Share Index (TSI) closed at 4,614.02 points increasing by 0.12 per cent. Sector Indices

• Industrial & Allied Index (IA) closed at 5,050.60 points, down by 0.06 per cent

• Bank, Finance & Investment Index closed at 5,755.27 points, up by 0.4 per cent

• Commercial Services Index closed at 2,142.69 points, unchanged from the previous week.

Primary market

On December 4, 2024, the central bank was in the market to offer treasury bills to investors.

The offerings included 900m/- for the 35-day maturity Treasury bill, 1.9bn/- for the 91-day Tbill, 2.9bn/- for the 182- day T-bill and 120.45bn/- for the 364-day T-bill. In this auction, demand was weak for the 35 and 91 as well as the 182-day bill, they did not receive any subscription and this continues to show investors preference for longer term maturities. The 364-day bill was undersubscribed receiving a subscription rate of 91.87 per cent from investors.

The 364-day bill saw an increase in the weighted average yield by 16.43 basis points since the last auction in November from 12.7896 per cent to 12.9539 per cent in this auction.

The price floor was slightly increased from 87/90 to 87/99 as the Central Bank allotted less than what was offered in this auction. The inflation rate was recorded at 3.0 per cent in October.

Secondary market

During the week ending on December 06th, market activities saw an increase compared to the previous week. Overall turnover increased by 452.14 per cent, from 32.9871bn/- to 182.1353bn/-.

Similarly, there was a notable decrease in the number of trades, rising from 68 to 137. Trading activities primarily focused on the long-end of the yield curve, with the 15-year, 20-year and 25-year bonds traded contributing to 99.87 per cent of the total turnover.

In the corporate bond segment, there was an increase in activity compared to the previous week. NMB corporate bond NMB-2022/25.

T1 recorded one trade with a face value of 3.0m/- at a price of 92/50. NMB corporate bond NMB2023/26. T1 recorded nine trades totalling 92m/- at an average price of 88/6366. CRDB2023/28.

T1 recorded two trades totalling 135m/- at an average price of 92/75.

Outlook Equities

The domestic market has experienced two consecutive weeks of contraction, driven largely by year-end sell-offs.

This presents an attractive opportunity for investors seeking favourable price entry points. As the year draws to a close, we anticipate a moderate slowdown in market activity, influenced by the December holiday season’s impact on consumer spending and retail-focused stocks.

While the holiday period typically boosts consumer activity, a potential decrease in stock inflows may apply downward pressure on the prices of related equities.

Fixed Income

The cutoff price for the midweek 20 year treasury bond auction declined to 99/50, setting a likely precedent for future long-dated auctions to be priced within discount regions.

With the remaining bonds on the auction calendar featuring a 10-year bond maturing on 21-Nov-2029 and a 20-year bond maturing on 18-Dec-2024, these securities could offer appealing opportunities for investors seeking attractive yields in the fixed-income market. For treasury bills, we anticipate a slight reduction in the weighted average yield for the upcoming 1-year paper auction. This would mark a reversal of the recent trend, which has seen yields increase by over 600 basis points since June.