IN the coming week, we still prospect that the market will remain vibrant going forward specifically on the banking sector and Industrial sector. We have witnessed share price movement in the local counters which amplifies that there is demand in the market that will drive market activities during the week.
The market will remain active during the week and mainly from the top local active counters. JATU share price appreciation thanks to higher demand then the supply in the market, CRDB activities as value investors continues swamp in this counter despite the dividend dilemma.
Other top counters expected to transact during the week include TBL, TPCC, NICOL, SWIS and DSE. In midweek we expect a 15-year Treasury bond auction to be held by the central bank. There could be slight increase in the WAY, as the treasuries yields have started to increase.
Higher demand for longterm instruments due to handsome yields will continue and hence higher chance of oversubscription in the coming auction.
Yields on treasuries will continue to increase but at a slight basis point. In the interbank cash market, despite the decrease in the Weighted average rate (WAR) during the previous week, we still reiterate anticipate 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 0.04 per cent to close the market at TZS 15.40 Trillion from TZS 15.39 Trillion in the previous week mainly due to mixed share price movements at the bourse.
JATU share price increased by 43.33 per cent to close at TZS 1,720, and KCB share price increased by 5.06 per cent to TZS 830, while EABL share price declined by 3.28 per cent to TZS 3,540, JHL share price declined by 3.48 per cent to TZS 5,550, and NMG share price declined by 6.90 per cent to TZS 270.
Domestic market capitalization slightly gained by 0.01 per cent due to JATU share price depreciation. TSI gained 0.38 per cent to close at 3,509.25 points, DSEI gained 0.04 per cent to close at 1,853.71 points, Industrial & allied index gained 0.02 per cent to close at 4,817.97 points, Bank, Finance, and Investment Index (B&F) and Commercial Service (CS) remain stationary during the week at 2,420.04 points and 2,139.33 points, respectively.
Total Volume of shares traded increased by 4.73 times to 3,232,306 with 143 deals from last week’s 683,204 with 186 deals. Total turnover for the week increased by 96.43 per cent to TZS 689.93 Million from TZS 351.23 Million previous week.
CRDB led all counters after transacting shares worth TZS 642.66 Million, JATU counter followed after transacting shares worth TZS 37 Million, DSE transacted shares worth TZS 8.34 Million, NICOL counter transacted shares worth TZS 554,800.00, TCCL transacted shares worth TZS 423,000.00, TPCC transacted shares worth TZS 399,000.00, VODA transacted shares worth TZS 199,800.00, NMB transacted shares worth TZS 179,200.00, SWIS transacted shares worth TZS 32,480.00, DCB transacted shares worth TZS 12,000.00, and PAL joined the laggard after transacting shares worth TZS 8,000.
Interbank market During the week, the Interbank Cash Market (IBCM) recorded a total transaction value of TZS 43.30 billion being an increase from last week’s TZS 18.90 billion traded. The WAR increased to close at 3.50 per cent from 3.73 per cent. The highest and lowest rate was 4.00 per cent and 3.50 per cent from 4.00 per cent and 3.50 per cent in previous week.
Debt Market In the debt market, outstanding government bond listed at the bourse stood at TZS 13.13 trillion. On the Secondary market, the government bond segment transacted TZS 42.33 billion whose face value was TZS 40.26 billion from last week’s TZS 14.87 billion and face value of TZS 14.08 billion.
For the Corporate bonds, the market transacted bond worth TZS 38.01 Million and face value of TZS 40 Million from the previous week transaction value of TZS 96.40 Million and face value of TZS 103.00 Million.
During the week, the central government in line with its debt issuance plan sought to raise total of TZS 90.23 Billion from the public through a treasury bill. The auction was undersubscribed by TZS 57.87 Billion.
The central bank pocketed total of TZS 24.10 Billion; 35-days, 182-days attracted zero bids and no successful amount while 364-days successful amount worth TZS 24.10 Billion.
WAY for 35 days, 91 days, and 182 days was zero while 364 days WAY was 5.74 per cent. WAP for 364-days was 94.58. Interbank Foreign Exchange Market Total volume in the Interbank Foreign Exchange Market decreased to USD 3.99 Million from USD 4.07 Million in the previous week.
TZS/USD remain strong to close the market at TZS/ USD 2,309.98 from TZS/ USD 2,309.97 in the previous week.