TCC emerges top equity market mover

TCC emerges top equity market mover

IN 288 deals, the equity market yielded a total of TZS 1.07Bln ($0.4Mln) turnover, transacting a total of 724,842 shares. This sets the equity market activities for the week about 40.5% behind the previous week, which yielded a total of TZS 1.8Bln ($0.8Mln).

The single off-market transaction from TCC makes the counter as the week’s top mover together with NMB counter, collectively accounting for 61.06% of equities turnover for the week.

Approximately ten (10) local counters were active during the week, but we only observed price changes from three (3); TCCL, NICO and NMB. NICO commenced the week with a price per share of 250 and ended the week at TZS 270 per share an 8% increment.

The counter traded a total of 36,460 shares generating a total of TZS 9.35Mln turnover. On the contrary, NMB which opened the week at price per share of TZS 2,040 dropped to close the week at TZS 2,000 per share, about 2% decline. NMB traded a total of161, 269 shares generating a turnover of TZS 323.89Mln. While the market is still digesting the TCCL acquisition deal, the counter has not been short of activities.

With scarce supply, purchase orders are piling up while buyers are willing to pay slightly higher than the prevailing price.

This in turn has pushed the counter’s price a few spreads higher for the past two weeks, to close this week at price per share of TZS 640 from TZS 495 at the start of the week, equivalent to 29.29% improvement.

The cross listed section of the market was in the red, albeit no activity was recorded on the DSE. The three counters that had recorded price movements recorded a negative change.

The highest drop was recorded on NMG, which dropped 11.63% from TZS 430 during the start of the week, to TZS 380 during close of the week.

Following closely were EABL and KCB, both recording a weekly drop of 1.25% and 0.56%, respectively. Contrary to previous week, local investors took hold of this week’s equities activities by leading both purchase and sale sides activities.

Locals bought shares worth TZS 867.95Mln about 81.04% of week’s total Turnover, while foreigners only bought shares worth TZS 203.04Mln taking up the remaining 18.96% of the total market turnover. Similarly, the sell side was also 69.19% locals and 30.81% foreigners. Net foreign outflow from the equity market was TZS 126.96Mln ($55,340).

The market wrapped up the week with a TZS 15,480.54Bln ($6.73Bln) capitalization, shedding TZS 67.56($0.03Bln) following price drops on EABL, NMG, KCB and NMB counters. Following suit, the corresponding Indices for the market, the Dar es Salaam All Share Index (DSEI) lost 8.1 points and closed the week with 1,857.26 points.

Money Market, Bonds and Bills As part of Bank of Tanzania’s initiative to align its securities issuance to other East African countries and to better manage the issuance of the securities, the Central bank will begin re-issuing securities that had already been issued previously to the public rather than consistently issuing new securities every two weeks.

This move would reduce the number of bonds issued periodically and leave more room for better cashflow management on the central bank’s side.

This initiative started with a February 20-year bond security that was re-issued this week. The bond was re-issued with an offer tag of TZS 139Bln, of which only TZS 129Bln was successfully raised, as the central bank discarded more than TZS 530Bln tendered out of the 661.52Bln that was tendered by the public.

As Investors push to improve their odds at acquiring the security, the prices for the bonds have significantly shot up where investors bid as high as 118.68 per unit of the security, with the Weighted Average price (WAP) settling at 109.05.

The inflated prices push the yield further down, where this week’s auction saw the Yield to Maturity dropped to 14.75% from 15.41% of the initial issue.

With recent talks on the intention of the central bank opening up the bond market to SADC countries the bond yields will presumably keep dropping as competition blooms an appetite for the lucrative securities keep growing.

The Interbank Cash Market (IBCM), recorded a TZS 9,000Mln worth of transactions. More than 50%lower than the previous week’s transactions. The interbank rate averaged 4.12% slightly higher than previous week’s average rate of 3.67%.

Currency By Wednesday of 24th November, the Interbank foreign Exchange market (IFEM) had exchanged a total of TZS 16.55Mln where the weighted average Exchange rate remained intact as TZS put a strong resistance against the dollar.

The TZS/USD exchange rate stood at 2,305.15 against TZS 2,305.25 of similar day in the previous week.


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