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New entrants drive up domestic market capitalisation

IN the week that ended 27th November 2020, the stock exchange marked another milestone after listing JATU Plc, an agro-industrial based firm in the EGM segment. JATU which is the smallest listed firm in terms of size 1.08bn/- is an agribased start-up firm formed by young entrepreneurs whose main goal is to empower youth through the agricultural sector.

The firm was listed earlier during the week at a price of 420/- per share. JATU was recorded as one of the active counters last week and the same is expected for the coming week. Other top counters to include TBL, CRDB, TPCC, NICOL and DSE are likely to remain active in the coming week.

Indices are likely to remain flat in the coming week except for DSEI due to share price volatility of cross listed counters. In midweek we expect a 15 year Treasury bond auction to be held by the central bank. There could be slight drop in the WAY for the short term instruments due to its oversubscription as a result of high demand.

In the interbank money market, notwithstanding the increase in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to be stable and within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.

The Bourse During the week, Total market Capitalisation slightly gained by 0.25 per cent to 14.93tri/- from 14.89tri/- in the previous week mainly due to share price gain of two giant kenyan based firms, EABL and JHL by 0.31 per cent and 3.17 per cent to close the market at 3,240/- and 5,850/-, respectively.

On the other side, KCB’s shares decline by 2.53 per cent to 770/-. The Domestic Market Capitalisation gained by 0.19 per cent week-onweek to close the market at 9.147tri/- mainly due to share price gain of the new entrant in the stock market, JATU Plc whose worthy saw a jump of 23.81 per cent from its listing price .

TSI closed at 1,799.12 points from 1,794.63 points, DSEI closed at 3,482.97 points from 3,476.42 points in the previous week. Industrial and Allied Index slightly increased to 4,840.85 points from 4,837.46 points , Bank, Finance and Investment increased to 2,297.08 points from 2,280.02 points while Commercial Services Index remained stationary at 2,141.86 points from the previous week.

Total Volume traded declined by 39 per cent to 1,420,548 shares from 120 deals all the way from 2,355,054 shares from 86 deals in the previous week. Total turnover sharply declined to 746.40m/- from 4.60bn/-.

TBL led all counters after transacting shares worth 361.16m/- from 65,571 shares through a pre-arranged market which is 48 per cent of the total chank. CRDB Bank followed by 230m/- which is 30.8 per cent , TPCC transacted shares worth 134m/-, JATU transacted shares worth 16.84m/-, NICOL transacted shares worth 1.48m/-, VODA transacted shares worth 1.2m/-.

Other counters that traded include TOL, NMB, DCB and TCCL. Interbank market During the week, the Interbank Cash Market (IBCM) had three trading sessions with total transaction value of 8bn/- being a decline by 55 per cent from a value of 46.8bn/-.

The WAR slightly increased to close the week at 3.92 per cent from 3.59 per cent in the previous week. The highest rate was 4 per cent while the lowest rate was 3.85 per cent from 3.85 per cent and 3.50 per cent in the previous comparative week.

Debt Market In the debt market, outstanding government bond listed at the bourse stood at 12.59tri/- from 12.54tri/- in the previous week. On the Secondary market, the government bond segment transacted 14.97bn/- whose face value was 13.95bn/- from last week’s 95.43bn/- and 89.78bn/-, respectively.

For the Corporate bonds the market transacted a 3 years 10 per cent paper at 27.07bn/- whose face value was 30.11bn/-. During the week, the central government in line with its debt issuance plan sought to raise total of 90.23bn/-from the public through a T-bill auction.

The auction was oversubscribed for 1.99 per cent 35 days by 100 per cent after the government fetched 1bn/- from 2bn/- tendered. The auction recorded 2.5 per cent WAY for 91 days, 2.6 per cent for 182 days and 4.23 per cent for 364 days.

Interbank Foreign Exchange Market Total volume in the Interbank Foreign Exchange Market declined to USD 2.95 from USD 10.67 in the previous week. Tanzanian shilling remained resilient to close the market at TZS/ USD 2,309.12.

Tanzania securities Analyst: ombeni@tanzaniasecurities.co.tz mariam@

I have been recently retrenched by my employer. ...

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Author: Stock Market

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