Both indices painted green during the week that ended on the 20th November 2020 as a result of increased equity prices during the week. The Tanzania Shae Index (TSI) gained 6.55 points as a result of a 0.2% increase of the domestic market capitalization.
The TSI and domestic market cap closed the week at 3,482.97 points and TZS 9,147.70bln ($3.96bln). The domestic market cap was lifted by CRDB, NICOL and JATU Plc, which all experienced appreciated prices.
Both, CRDB and NICOL, went up by 2.78% to close the week at a price of 185/- for both counters. JATU Plc, which was listed on 23rd November 2020 at a price of 420/- climbed by 23.8% during the week, to close the week at a price of 520/-.
The DSEI also gained 4.49 points as a result of a 0.26% appreciation of the total market capitalization. The gain of the total market cap resulted from the appreciation of Jubilee Holdings (JHL) and East African Breweries (EABL). JHL climbed by 3.17% followed by EABL which went up by 0.31%.
The two counters were enough to offset the depreciation of National Media Group (NMG) which dropped by 1.54%. Cross listed counters were complimented by the upward movement of CRDB, NICOL and JATU. The DSEI closed the week at 1,799.12 points while the total market cap stood at TZS 14,937.61bln ($6.47bln).
The total equity turnover significantly fell on a weekly basis, by 83.8%, while the volume of shares traded fell comparably at a moderate pace, by 39.7%. The total volume of shares traded during the week amounted to 1.42mln in 100 deals, resulting into a turnover of TZS 746.39mln ($0.32mln).
Almost half of the turnover was realized on Friday in a prearranged block transaction on the TBL counter. The top mover spot was retained by TBL which saw activities only one day of the week, but enough to almost double what would have been the weekly equity turnover.
TBL accounted for 48.4% of the total turnover after moving 65,621 shares at a price of 5,500/- in a prearranged block transaction. TBL was followed by CRDB which accounted for 30.8% of the total equity turnover. On average, foreign investors remained dominant of the market although the divestment part was dominated by locals during the week.
Foreign investors accounted for 55.9% of the total investments, with a net foreign inflow of $0.0245mln. Locals accounted for 51.68% of the total divestments during the week. Market, Bills and Bonds The value of transactions on the Interbank Cash Market (IBCM) dropped by a sizable magnitude for the third week in a row.
The value of transactions stood at only TZS 8bln ($3.46mln) for the week from TZS 46.8bln ($20.26mln) during the previous week and TZS 134bln ($58mln) in the week before last. The interbank rates have been on an opposite direction with the value of transactions after three weeks of consecutive weekly appreciation.
The interbank rates closed the week at 3.85% from 3.60% during the previous week, although the rate hit the weekly highest of 3.97% on Tuesday, 24th November 2020. During a Treasury bills auction held on 25th November 2020, the 35 days tenor was oversubscribed by 100% while the 364 days tenor was undersubscribed by 17.85%.
The 91 days and 182 days tenors were fully subscribed. The total size offered by the Bank of Tanzania was the usual TZS 90.23bln ($39.06mln) while the tender size amounted to TZS 76.14bln ($32.96mln), marking a total undersubscription rate of 15.6% from 53 bids. The central bank accepted 46 bids worth a total of TZS 63.4bln ($27.45mln).
The yield of the 35 days tenor remained similar to the previous auction while the 91 days and 182 days tenors gained 8bps and 3bps respectively. The 364 days on the other hand lost 12bps. The yields to maturities from the auction under review were 1.99%, 2.50%, 2.61% and 4.23%, for the 35 days, 91 days, 182 days and 364 days tenors respectively.
Currency Market The shilling slightly depreciated by 2 pips during the week, as volumes trading significantly dropped after reports showing only two active trading sessions throughout the week. The shilling closed the week at a weighted average exchange rate of TZS 2,309.12/ USD. The value of transactions on the Interbank Foreign Exchange Market (IFEM) dropped by 72.35% to a total of $2.95mln.
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