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Jatu share rallies, NICO slides

Jatu share rallies, NICO slides

THE DSE equity market posted a bearish performance of 1.31bn/-, down by 61 per cent amid the Eid-el Fitr holiday. TOL Gases emerged as last week’s top trading counter with 46.27 per cent of the market share followed by CRDB Bank at 39.21 per cent, TCCL/ Simba Cement at 6.13 per cent, NMB Bank at 3.90 per cent and lastly TPCC/Twiga Cement at 3.35 per cent.

Price movement was recorded on five domestic traded equities this week. Jatu appreciated the most by 19.23 per cent to end the week at 310/- per share, followed by Simba Cement up by 1.11 per cent to close at 1,820/- per share.

On the other hand, NICO went down by 9.88 per cent to end the week at 365/- per share, DCB dropped 5.26 per cent to close at 180/- per share and Twiga Cement depreciated by 1.42 per cent to close at 4,180/- per share. Total market capitalisation dropped by 0.83 per cent to 15.424tri/- and domestic market capitalisation went down by 0.12 per cent closing at 10.19tri/-.

The key benchmark indices were as follows

Tanzania share index (TSI) closed at 3,853.66 points after decreasing by 0.12 per cent and All Share Index (DSEI) also decreased by 0.83 per cent to close at 1,850.44 points.

The sector indices closed as follows: Industrial and Allied Index (IA) closed at 5,133.08 points, down by 0.15 per cent; Bank, Finance and Investment Index closed at 3,125.25 points, down by 0.15 per cent and Commercial Services Index closed at 2,134.28 points, unchanged from the previous week.

Market news

CRDB and NMB bank have disclosed their respective quarter one 2022 earnings results, both posting strong earnings for the respective period.

CRDB Bank

▪ Interest Income: +16 per cent to 212.2bn/-

▪ Non-Interest income: +81 per cent to 103.3bn/-

▪ Impairment Losses: -22 per cent to 20.2bn/-

▪ Profit After Tax: +111 per cent to 90.4bn/-

▪ Total Assets: +6.7 per cent to 9.4tri/- NMB Bank

▪ Interest Income: +17.3 per cent to 223.9bn/-

▪ Non-Interest income: +33 per cent to 87.3bn/-

▪Impairment Losses: -36.4 per cent to 14bn/-

▪ Profit After Tax: +55 per cent to 101.2bn/-

▪ Total Assets: +29 per cent to 8.9tri/-

DEBT Primary Market

Thursday, May 5, 2022, the Bank of Tanzania offered 1.0bn/- for the 35-day maturity Treasury bill while 1.7bn/- was offered for the 91-day bill, it also offered 3.0bn/- and 72.7bn/- for 182 and 364-day maturities respectively. All the bills on offer were subscribed, and only the one-year Treasury bill registered a yield gain, conversely average yields for the remaining bills dropped as demand for the money market instruments increased.

The 364-day bill yield gained 11 basis points to reach 3.30 per cent from 3.19 per cent, the 182-day bill lost 54 basis points to reach 2.78 per cent from 3.41 per cent, and 91 day bill lost 5 basis points to 2.6 per cent from 2.65 per cent and the 35 day bill lost 5 basis points from 2.35 per cent to 2.30 per cent.

Secondary Market

In the trading week ending May 7, the yield curve registered a slight uptick on the far end, as the market began adjusting positions ahead of the 25-year Treasury bond auction set for May 11. Overall activities in the secondary market were bearish, in line with our forecast, the value of bonds traded decreased by 33.43 per cent to 35.59bn/- from 53.47bn/- recorded in the previous week. Registering a mere 25 trades relative to 32 trades in the preceding trading week.

Reduced trading activities are attributed to the shortness of the trading week due to festivities. This week the Bank of Tanzania will auction a 25- year Treasury bond, we expect the auction to register a high subscription rate as has been the case for long-term bonds.

Outlook

We expect to see more trading activities for domestic listed equities as we head towards the dividend period.

Overall good earnings reported by a number of companies in 2021 will create an incentive for investors to drive momentum for price appreciation in a number of counters, recovery from Covid-19 pandemic and the overall economic growth pulsating a number of companies to higher profitability.

Mr Masumbuko is a Chief Executive Officer of Zan Securities—a capital markets and securities authority licensed dealer and a member of the DSE.

raphael.masumbuko@zansec. co.tz

Jatu share rallies, NICO slides

THE DSE equity market posted a bearish ...

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Author: RAPHAEL MASUMBUKO

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