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Volume of shares, activities on DSE up, turnover down

Volume of shares, activities on DSE up, turnover down

IN a relatively slow week for DSE, Vodacom Tanzania Ltd (VODA) was the busiest counter of the week.

The counter transacted more than three (3) million shares that generated a total of TZS 1.8Bln turnover.

This secured the counter’s position as the top mover for the week, whereby turnover generated by the counter was over 75% of the total DSE’s equity turnover for the week.

This lucrative transaction went through the pre-arranged block trades window, and hence had no impact on the counter’s share price.

The bourse transacted a total of 4.2million shares which is 30% higher than the 3.1million shares that were transacted the previous week.

The shares transacted generated for the bourse, a total of TZS 2.32Bln ($1Mln) from equities transactions, this is about a 42% plunge from TZS 3.94Bln ($1.71Mln) of the previous week.

Minor changes were noted on the market Indices this week, the All-Share Index (DSEI) which tracks the total market activities, declined by 0.56% equivalent to 10.78 index points while Tanzania Share Index (TSI) which tracks all domestic counters edged upwards by a mere 0.18% equivalent to 6.96 index points.

A continual weakening in the cross-listed market greatly influenced the downward movement in the DSEI while the domestic counters appear to have reached a resistant point not many changes have been noted in these past two weeks.

Positive changes were noted on JATU, which closed at TZS 220 per share, up 7.3% from TZS 205 at the start of the week.

The counter transacted about 4,760 shares that generated TZS 1.04Mln turnover. Twiga Cement (TPCC) also received a positive sentiment from investors after declaring a wholesome TZS 390 dividend per share, expected to reward investors with approximately 8% dividend return. The counter closed at TZS 4,240 up 3.4% from TZS 4,100 at the start of the week.

The counter transacted a total of 10,607 shares worth TZS 45Mln. Sentiments were slightly different on DSE, DCB NICO and TICL counters. TICL which was the top loser, its share price plunged by 9.5% closing at TZS 285, down from 315 per share the previous week.

Furthermore, NICOL which had enjoyed a bullish trend in the better part of the first quarter was discounted by investors by about 8.5% and closed down at TZS 540 per share at the end of the week. DCB and DSE also declined by 2.6% and 2.5% closing at TZS 190 per share and 1,540 per share respectively.

The cross-listed market maintained the bearish sentiment held since the beginning of the year. This week again only National Media Group (NMG) recorded positive growth in share price, the counter closed at 445 per share, 3.49% up from TZS 430 recorded the previous week, the media company known for the Citizen and Mwananchi newspaper brands in Tanzania has posted a handsome profit for its investors, two-digit growth in revenue and profit this has received positive sentiment from the stock market.

On the contrary, both JHL and EABL lost a chunk of the share price each declining by 4.63% and 2.72% respectively with KCB following closely, down 1.15%. Local investors in the retail segment were fairly active during the week, albeit the block transaction from Vodacom cemented foreign investors as dominants on both buy and sell sides. Foreign investors accounted for 77.61% and 77.60% in both buy and sell-side activities. Local investors accounted for 22.39% and 22.40% of the buy and sell-side respectively.

Treasury Securities

The Treasury bills auction of the week has seen the number of bidders declining by more than half, from 86 bidders of the previous auction to 32 bidders of the current auction. Despite the shrinkage in the number of bidders, the auction was substantially oversubscribed.

The central bank had offered the same TZS 78.4Bln but was received with a whooping TZS 230Bln tender size, more than TZS 150Bln above the offered amount while all tenures of the bills i.e 35 days, 91 days, 182 days and 364 days received over and above the offer of each tenure.

The central bank accepted funds from 5 bidders only, taking only TZS 65.7Bln and discarding more than TZS 170Bln investors’ money. The yields for the papers have kept on weakening, this week’s average yield was around 3%, about 50 bps down from the yield of the previous auction.

Money Markets

The Interbank Cash Market (IBCM) recorded a total volume of TZS 76Bln, being 18.75% higher than TZS 64.02Bln that was transacted the previous week. The improvement in the amount came in hand with the increase in the interbank rate to 2% up from 1.5% the previous week.

The Shilling has weakened against the dollar this week, the TZS/ USD exchange rate has increased from TZS 2,310.12 the previous week, to the closing of TZS 2,310.20 this week. With uncertain external economic conditions and with the country being a net Importer the shilling in the short run will be negatively affected.

The volume traded on the Interbank Foreign Exchange Market (IFEM) slightly declined from 7.05Mln to 6.65Mln this week.

You might be bright, but a brighter fellow exists

DEAR nephew Milambo Greetings from this confused ...

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Author: WEEKLY MARKET

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