DAR ES SALAAM: FOR the week ending August 2nd, the Dar es Salaam Stock Exchange (DSE) saw a 24.39 per cent increase in turnover, reaching 2.535bn/-, up from 2.037bn/- the previous week.
The pre-arranged board registered some activities as NMB Bank and TBL recorded block trades.
Throughout the week, NMB dominated trading activities, representing 47.15 per cent of the total market turnover, followed by CRDB at 35.35 per cent and TBL at 13.84 per cent.
CRDB was the top gainer for the week, appreciating by 5.26 per cent to close off the week at 600/- per share. Afriprise’s share price increased by 4.26 per cent closing the week at 245/- per share.
DSE gained 2.5 per cent concluding the week at 2,460/- per share. TCCL gained 2.41 per cent during the week reaching 1,700/- per share and NICO’s share price had a 1.28 per cent increase closing off the week at 790/- per share.
However, TPCC lost 2.08 per cent reaching 3,820/- per share while Mkombozi Commercial Bank (MKCB) depreciated by 1.82 per cent to close off the week at 540/- per share.
In terms of market capitalisation, there was a general increase in the size of the markets, with total market capitalisation increasing by 0.66 per cent to 17.252tri/-by the week’s end.
Similarly, domestic market capitalisation increased by 0.58 per cent, reaching 12.120tri/-.
Key benchmark indices
All Share Index (DSEI) closed at 2,067.03 points increasing by 0.66 per cent.
Tanzania Share Index (TSI) closed at 4,575.85 points increasing by 0.58 per cent.
Sector Indices
Industrial & Allied Index (IA) closed at 5,074.70 points, down by 0.2 per cent
Bank, Finance & Investment Index closed at 5,603.54 points, up by 1.856 per cent
Commercial Services Index closed at 2,134.27 points, unchanged from the previous week.
Timiza oversubscribed due to attractive returns
The Timiza Fund, Tanzania’s pioneering private mutual fund, has exceeded expectations by achieving an oversubscription rate of 103 per cent, driven by its attractive return on investment. Launched as the country’s first private mutual fund, Timiza successfully raised 10.38bn/- during its initial sales period from May to June, surpassing its 10bn/- target.
Zan Securities Chief Executive Officer, Raphael Masumbuko, emphasised that the Timiza Fund is designed to be inclusive, catering to both high and low-income earners.
National Social Security Fund (NSSF) Investment Officer, Mr David Mtenda, praised the Timiza Fund for its attractive returns and strong governance.
“We invested in Timiza because of its 13 per cent annual return, which is significantly higher than the 8.0 per cent to 12 per cent offered by other funds,” Mr Mtenda said.
Mr George Mapunjo, a teacher at Jangwani Secondary School, shared that his decision to invest was influenced by the fund’s affordable unit prices and diversified investment strategy.
Highlights: Debt Market
Primary market
On Wednesday 31st July 2024, the central bank was in the market offering 183bn/- to investors for a reopening of the 20-year Treasury bond offering a 15.49 per cent coupon rate annually.
This auction was catered for investors with more preference for long-term papers.
The auction was subscribed by 267.44 per cent the auction received bids totaling 489.417bn/- and accepted bids worth 431.858bn/-.
In this auction the 20-year Treasury bond still sees high demand, the bond oversubscribed receiving 267.44 per cent subscription rate.
The weighted average yield to maturity has increased in this auction by 3.87 basis points relative to the previous auction held on June 2024 from 15.1296 per cent to 15.1683 per cent.
The amount offered has increased in this auction to 183bn/- from 137bn/- in the last two auctions, however the central bank accepted more than they required accepting bids worth 431.585bn/-.
Moreover, the price floor has fallen from 102/9793 to 100/- in the previous auction in June 2024.
Secondary market
During the week ending on August 02nd, market activities saw a decrease compared to the previous week. Overall turnover decreased by 74.6 per cent, from 22.474bn/- to 5.7087bn/-.
Similarly, there was a notable decrease in the number of trades, falling from 63 to 41.
Trading activities primarily focused on the long end of the yield curve, with the 20-year and 25-year bonds traded contributing to 94.8 per cent of the total turnover.
In the corporate bond segment, there was a decrease in activity compared to the previous week.
NMB corporate bond NMB-2022/25.T1 recorded six trades totalling 40m/- at an average price of 93.2033, NMB-2023/26.T1 recorded one trade with a face value of 1.0m/- at a price of 80/- while NBC-2022/27.T1 recorded one trade with a face value of 8.0m/- at a price of 87/-.
Outlook
CRDB and NMB have released their earnings reports for the second quarter, showcasing strong results. NMB reported a remarkable 20 per cent year-on-year increase in profit after tax, reaching 314bn/- compared to the same period in 2023.
Meanwhile, CRDB exceeded expectations with a 53 per cent rise in profit after tax, amounting to 275bn/-. With these robust performances, both banks are expected to dominate trading activities in the coming weeks, potentially prompting a sell-off of other counters in favour of them. As more companies disclose their financials, we anticipate continued high activity in the market.
In the debt market, increased activity is expected in the secondary market, driven by higher yields making government bonds more attractive. The recent yield increases (higher yields imply lower prices) and the substantial time gap until the next long-dated auction will further contribute to this heightened activity.