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Dar Exchange market registers bearish run on JPM death

FOLLOWING the recent passing of the former President of Tanzania, the late John Magufuli, 22nd March and 26th March 2021 were national funeral and burial days, in Dodoma and in Chato, Geita, respectively.

Orbit Securities Co. Limited joins the capital markets, the financial sector and the whole nation in mourning of our fallen hero. May his soul rest in eternal peace. Following the funeral, the market was closed during the two mentioned days, thus the week had only three trading days.

As a result of fewer trading days the total equity turnover dropped by 96.8 per cent on a weekly basis. The total turnover during the week amounted to TZS 111.35m ($0.048m). The total volume of shares traded during the week was 207,990 from 120 deals.

The volume of shares traded went down by 97.1 per cent on a weekly basis, from 7,292,219 shares traded in 206 deals during the previous week. Activities were highly dispersed among counters during the week under review.

The top mover spot was maintained by CRDB, accounting for 28.9 per cent, followed closely by DSE which accounted for 23.37 per cent of the total equity turnover.

Six counters, namely CRDB, DSE, TPCC, JATU, TBL and NICOL, collectively accounted for 98.1 per cent of the total equity turnover.

Local investors were highly dominant of market activities as foreign investors took a back seat during the week, correspondingly with minimal activities on the TBL counter.

Local investors accounted for 91.11 per cent of the total investments and 100 per cent of the divestments. Foreign investors were net buyers, with a net inflow of $4,283.53.

The Tanzania Share Index (TSI) slightly fell by a 0.28 point following a 0.008 per cent decline of the domestic market capitalisation.

The domestic market cap at the end of the week was TZS 9,249.83bn ($4bn) while the TSI stood at 3,518.08 points. NICOL and JATU were the only counters that saw price movements during the week under review.

NICOL saw a depreciation of 2.56 per cent while JATU went down by 9.47 per cent. The All Share Index (DSEI) gained 1.97 points during the week, following a 0.11 per cent gain of the total market capitalisation.

A 2.92 per cent gain on the price of KCB Bank was enough to pull up the DSEI despite a decline on other three cross listed counters on top of the two domestic counters.

Other cross listed counters that registered price movements were Jubilee Holdings (JHL), National Media Group (NMG) and East African Breweries (EABL) which fell by 5.04 per cent, 5 per cent and 1.12 per cent respectively.

The DSEI and total market cap at the end of the week was 1,875.85 points and TZS 15,584.71bln ($6.75bln).

Market, Bills and Bond

The week saw only one trading session, which was a reason for a significant decline in the value of transactions.

The total value of transactions during the session was TZS 10bn ($4.33m) which is 84 per cent lower than the previous week. Volatility in the interbank rate persisted as it went up by 115bps to close the week at 3.65 per cent.

This follows a decline of 150bps during the previous week. The rate of undersubscription for the 10 years Treasury bond intensified to 73 per cent during an auction held on 24th March 2021 compared to 54 per cent during an auction on 30th December 2020.

During the auction under review, the Bank of Tanzania gave an offer size of TZS 133bn ($57.58m) while the tender size from the public was a mere TZS 36.03bn ($15.6m) accumulated from 36 bids.

The highest bid price and lowest bid price were 101.00/- and 88.9226/-, compared to the previous auction which saw highest and lowest bid prices stand at 100.00/- and 96.60/- respectively.

The Bank of Tanzania accepted only 26 bids worth TZS 2.01bn ($0.87m), leaving TZS 34bn ($14.72m) on the table. The minimum accepted price stood at 96.63/- while the average successful price was 99.0546/-.

The weighted average coupon yield went up by 4.68bps to 11.5492 per cent.

Currency Market

Due to fewer trading sessions, the value of transactions on the Interbank Foreign Exchange Market (IFEM) dropped by a little over 60 per cent compared to the previous week.

The total value of transactions during the week amounted to $2.05mln compared to $5.17mln during the previous week.

The shilling remained resilient with a slight appreciation of 4 pips to close the week a weighted average exchange rate of TZS 2,309.95/USD.

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