Dar exchange set to maintain good performance next week

THE stock market remained active during the week despite a decrease in turnover.

The forthcoming week market shall maintain its good performance with CRDB, TPCC and TBL as the key drivers. In the Primary Bond market segment, investors are quite thirsty of the long term government treasuries.

During the auction held on Wednesday 12th February 20 years bond was oversubscribed as a result the WAY slipped to 16.29 per cent from 16.76 per cent in the previous auction.

The government securities yield curve will continue to remain normal and weighted average yields are expected to decline due to higher appetite of the government treasuries. Overnight lending rate during the week regained from the decline trend last week, with the maximum rate (WAR) of 4.13 per cent from 4.1 per cent in the previous week.

Notwithstanding the increase in WAR total volume decline thanks to banks eyes on long term security traded during the week. The rate is expected to be maintained at 4.0 per cent with low volatility in both sides up and down. Tanzania shillings depreciated slightly against US Dollars during the week ended on 14th February.

The highest and lowest rate was TZS 2,314.00/USD and TZS 2,299.00/ USD respectively from TZS2, 310.00/USD and TZS 2,299.00/USD respectively.

For the coming week, we expect Tanzanian shilling to maintain its value at TZS 2,300.00/USD to TZS 2,300.93/USD Weighted average rate (WAR). The Central Bank tanks 113.4bn/- returning back 337.3bn/- to investors as weighted average yield slips to 16.29 per cent.

The Bourse

During the week that ended 14th February, the bourse recorded a slight decrease in total market capitalization by 0.45 per cent to 17.60tri/- compared to 17.68tri/-recorded in the previous week. Domestic market capitalisation increased by 1.15 per cent to close the week at 9.22tri/- from 9.12tri/-in the previous week.

Dar es Salaam stock exchange all share index (DSEI) closed the week at 2,120.90 points being a decrease by 0.45 per cent from 2,130.39 points recorded in the last day of the previous week.

Movement of the DSEI was contributed by the movement in the share prices of both locally and cross listed companies as follows; CRDB increased by 28.57 per cent to 180/- from 140/-, JHL increased by 2.5 per cent to 8,200/- from 8,000/-, EABL which decreased by 0.4 per cent to 4,980/- from 5,000/-, KCB decreased by 5.0 per cent to 1,140/- from 1,200/- and NMG decreased by 2.5 per cent to 780/- from 800/-.

The Tanzania all share index (TSI) and B&F index increased by 1.15 per cent and 6.17 per cent, respectively as a result of CRDB share price appreciation. Other indices remained stationary while, active counters during the week were CRDB, DSE, TBL, TPCC, TCC, NICO, MKCB and VODA.

Total turnover worth 472.44m/- was recorded from 154 deals compared to 9.88bn/- from 95 deals in the previous week. Volume of shares traded during the week decreased to 1,398,523 shares from 3,065,937 shares traded in the previous week.

CRDB traded shares worth 191.45m/- which is 40.52 per cent of total weekly turnover, followed by DSE which traded shares worth 142.67m/- which is 30.20 per cent of the total weekly turnover, TBL traded shares worth 97.18m/- which represent 20.57 per cent of the total weekly turnover.

TPCC traded shares worth 20.82m/- which represent 4.41 per cent of total weekly turnover, TCC traded shares worth 13.31m/- which represent 2.82 per cent of the total weekly turnover, NICOL traded shares worth 4.64m/- which represent 0.98 per cent of the total weekly turnover.

Other counters transacted during the week include MKCB which traded shares worth 1.66m/-, VODA traded shares worth 0.64m/- while, TOL traded shares worth 0.036m/-.

Interbank market;

During the week the weighted average rate (WAR) for interbank market increased and closed at 4.13 per cent from 3.87 per cent in the previous week. Total volume traded decreased by 39.5 per cent to 109bn/-compared to 181bn/- in previous week.

The highest rate in the interbank market was 5.0 per cent while the lowest was 4.0 per cent compared to the previous’ week high and low rate of 4.50 per cent and 3.50 per cent, respectively.

Debt Market

In the bond market, government bond recorded transaction value of 16.67bn/-with face value of 16.75bn/- compared to the previous week’s transaction and face value of 41.46bn/- and 41.72bn/-, respectively. On the Corporate bonds segment, the market remained dry same as previous week.

During the week the Government sought to raise 117bn/-through 20 years- treasury bond auction. The government pocketed 113.54bn/-from 208 successful bids amongst 566 bids worth 450.87bn/-tendered, and hence an oversubscription level of 333.87bn./-.

Number of bids received was 566 with the highest and lowest bid being 98.84/100 and 88.42/100 respectively. Minimum successful price being 95.15/100, weighted average price of successful bids being 95.50/100, weighted average yield to maturity being 16.29 per cent.

Interbank Foreign Exchange Market

During the week, total volume traded was USD 11.18 million at an average rate of TZS/USD 2,300.93 being a decrease from USD 7.4 million at an average rate of TZS/ USD 2,300.16.

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Author: Stock Market Weekly Performance

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