DSE yo-yos as investors wait for 2022 financials

DAR ES SALAAM Stock Exchange (DSE) has posted a mixed performance as volume and turnover diverged from prices.

The diverging, equity market experts said may be the outcome of investors digesting last year’s fourth financial results, which have started to affect prices positively.

Vertex International Securities, Advisory and Capital Markets Manager,  Ahmed Nganya said the current trend was due to a reason that investors are still digesting fourth quarter results.

“The domestic equities recorded a mixed performance [last] week as positive price momentum could not inspire the increase in volume and turnover,” Mr Nganya said.

The trading volumes slightly went down registering a turnover of 693.47m/-, marking a week-on-week decrease of 62.16 per cent from 1.83bn/- recorded in the previous week.

Top trading counters for the week were CRDB Bank, Twiga Cement and NMB Bank dominating the overall market turnover figure by 46.83 per cent, 40.81 per cent and 7.17 per cent respectively.

“We expect the performance to pick up next week as the results start factoring into prices,” Mr Nganya said on Monday through the firm’s Market Review.

Zan Securities CEO Raphael Masumbuko said the trend signalled a strong start to the earning season, where a number of listed companies begin releasing their financials for last year.

“[This] is usually a time of increased volatility in the market,” Mr Masumbuko said in the firm’s Weekly Market Wrap-Up report.

“The positive price movements indicate increased investor confidence in the market, and suggest that the market is performing well overall,” Zan CEO said.

Price appreciation was recorded on Simba Cement registering the most gain adding an extra 10 per cent week on week to close at 1,100/- per share, Twiga following suit going up 4.97 per cent to close at 3,800/- and CRDB gained 2.63 per cent to end the last week at 390/- per share.

“No domestic stocks lost value within the week,” Mr Masumbuko said.

All Shares Index (DSEI) increased by 0.64 per cent to close at 1,889.13 points and Tanzania Shares Index (TSI) increased by 0.63 per cent to close at 3,903.94 points.

Banks, Finance and Investment (BI) closed at 3,414.79, which was 0.97 per cent up. Industrial and Allied (IA) increased by 0.68 per cent to close at 5,036.61 points and no change for commercial services at 2,147.73 points.

Orbit Securities said in its Weekly Market Synopsis that the momentum was driven by investors looking forward to the release of strong Q4 financials, which will provide a clearer picture of the dividends this high-yielding stock is likely to pay.

“This activity is largely attributed to the anticipation of strong Q4 earnings from the Tanzanian banking giant,” Orbit said.

NMB, CRDB and Maendeleo banks have released their last year’s financials, showing the lenders posted historical profits.

NMB pre-tax profits skyrocketed by 49 per cent to 620.9bn/-, CRDB by 31 per cent to 353bn/- and Maendeleo doubled the profit to 1.31bn/-.

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