BOND market trading on the Dar es Salaam Stock Exchange (DSE) increased three-fold quarter to quarter driven by throat cutting competition in primary market.
The DSE debt market recorded a historic level after increase from 171bn/- in Q1 last year to 484bn/- in Q1 this year.
DSE Chief Executive Officer Moremi Marwa said in comparison to Q1 and Q4 of last year “this was a recorded increase of 54 per cent.”
“Relative to the first quarter of 2019, this quarter increase was three folds,” Mr Marwa said in DSE CEO Note for Q1 on Thursday.
The market in Q1 recorded a turnover of 484bn/- from the transaction value of 309bn/- in Q4 last year.
The bond face value was 482bn/- and 324bn/- respectively. Zan Securities Advisory and Capital Markets Manager Ahmed Nganya said bidding competition in the primary market pushed investors to buy bonds in secondary markets.
Also, Mr Nganya told the Daily News yesterday, “investors are fleeing their funds into government bonds for safety during this difficult period of COVID 19 pandemic.”
The Note, also said, total outstanding listed Treasury bonds increased by 3.0 per cent from 10.53tri/- at end of last December to 10.86tri/- at end of last month. “This was a net increase of 333bn/-,” the Note said.
On the other hand, outstanding corporate bonds listed on DSE remained at 176bn/- issued by four entities, namely TDB (formerly PTA Bank), EXIM Bank, NMB Bank and TMRC.
However, transactions in the corporate bonds market decreased from 145m/- in Q4, 2019 to 103m/- in Q1, 2020.