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Local investors dominate Dar Exchange market

LOCAL investors were highly dominant of the market during the week that ended on 19th February 2021 as foreign investors took a back seat along with zero transactions on the TBL counter.

Local investors accounted for 99.86 per cent of the total investments and 98.84 per cent of the total divestments while foreign investors accounted for the balance.

Major market movement was seen on Thursday when CRDB saw a prearranged block transaction involving a little over 3m shares at a price of 200/-, purely between local investors. Automatically CRDB became the top mover for the week, accounting for 93.1 per cent of the total weekly equity turnover.

CRDB moved a total of 3.19m shares during the week and realised a weighted average price of 201.17/- per share, highly skewed downwards by the prearranged block. Normalising the block transaction, the average price rises up to 214.99/- per share, although still lower than the closing price of 220/-.

Seems the restrictions on dividend payment subject to regulatory CIR and NPL ratios are still weighing on the price of the bank. The total equity turnover for the week went up by 96.4 per cent, to a total of TZS 689.93mln ($0.3mln) mostly as a result of the prearranged block transaction on the CRDB counter.

The total number of shares traded rose from 0.28m to 3.23m shares traded in 143 deals. Due its low price and high magnitude of the listed shares and free float, trading sessions that are dominated by CRDB usually have a large amount of volume of shares on transactions.

Both indices were on the green during the week, although both by a slight. The Tanzania Share Index (TSI) gained a 0.44 point to close the week at 3,509.25 points. The gain follows a marginal 0.012 per cent growth of the domestic market capitalization to TZS 9,226.57bn ($3.99bn).

JATU was the only counter that saw its price move during the week after a significant appreciation of 43.33 per cent to close the week at a price of 1,720/- per share. Due to its trivial weight on the TSI, a significant move on the price of JATU has a minuscule impact on the index.

The All Share Index (DSEI) also gained a 0.81 point to close the week at 1,853.71 points. Correspondingly, the total market capitalisation grew by 0.04 per cent to close the week at TZS 15,400.77bn ($6.67bn). The total market cap is still down 9.92 per cent since the beginning of the year.

The appreciation resulted from the giant, KCB Bank (KCB) which grew by 5.06 per cent. Other domestic counters that saw movements were on the losing side.

National Media Group (NMG) fell by 6.9 per cent, Jubilee Holdings (JHL) dropped by 3.48 per cent awhile the other giant East African Breweries (EABL) dropped by 3.28 per cent. Market, Bills and Bond The value of transactions on the Interbank Cash Market (IBCM) amounted to TZS 43.3bn ($18.74m).

The amount is 129 per cent higher than the value traded during the previous week. Corresponding to increasing liquidity, the weighted average interbank rate dropped by 23bps to 3.5 per cent. Similar to the previous Treasury bills auction, the 35 days, 91 days and 182 days tenors were cancelled due to zero bids, during the auction that was held on 17th February 2021.

Bids on the 364 days tenor fell from 83 during the previous auction to 45 during the auction under review. The Bank of Tanzania offered the usual total of TZS 90.23bn ($39.06m) while the amount offered for the 364 days tenor amounted to TZS 84.53bn ($36.59m). The 364days tenor was undersubscribed by 68.5 per cent as the tender size from the public amounted to TZS 26.66bn ($11.54m).

The Bank of Tanzania accepted 39 bids worth TZS 24.11bn ($10.44m). The weighted average yield (WAY) for the 364 days slightly gained 7bps to 5.74 per cent. Currency Market The shilling remained resilient against the greenback, depreciating by a pip compared to the exchange rate at the end of the previous week.

The weighted average exchange rate during the end of the week was TZS 2,309.98/USD.

The value of transactions on the Interbank Foreign Exchange Market (IFEM) amounted to $3.99m which is 2 per cent lower than the previous week.


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