Dar Es Salaam Stock Exchange maintains muted growth

Dar Es Salaam Stock Exchange maintains muted growth

THE DSE bourse this week, has maintained muted growth in the listed stocks, maintaining single digit growth on both market Indices.

The speed of price change on the domestic counters was slightly higher than that of cross-listed counters, depicted by the 1.16 per cent growth in the Tanzania Share Index (TSI) and 0.88 per cent growth in the All-Share Index (DSEI). The growth can be translated into 44.56 and 16.26 points growth on TSI and DSEI respectively.

On the week under review, the DSE bourse generated a total of TZS 1.49Bln ($0.64Mln) from equities transactions, exchanging a total of 2.6million shares.

This week’s transaction presents a 13 per cent growth from TZS 1.31Bln ($0.56Mln) that was generated on the previous week, while the number of shares traded remained more or less unchanged, a 0.7 per cent decline week on week.

The small improvement on the domestic market was influenced by growth in DSE, JATU, NMB, TCCL and NICOL over the week. DSE being the top gainer went up 22 per cent from TZS 1,560 to TZS 1,900 at the week’s close.

The counter transacted a total of 20,450 shares that only generated about TZS 37Mln turnover. JATU which has been on the rise for the third week in a row, saw its share price once again climb 15 per cent up, closing at TZS 355 per share, following closely was NMB whose share price climbed to TZS 2,920 per share from TZS 2,700. During the week NMB had traded a total of 75,000 shares that generated a turnover of TZS 218.61Mln.

Wrapping up on the rally for the week was TCCL which this week, has gone up by 20 spreads to close at TZS 1,840 per share, after transacting a few shares. NICO has remained in the red this week as well. The counter has made two attempts now to hold a shareholder’s meeting with no success after the failing to reach the required quorum for the meeting.

This has left some shareholders in suspense hence affecting the company’s performance on the bourse. The cross-listed market has remained uneventful on the DSE as per usual with most counters maintaining their previous week’s price level and a few making changes.

East African Breweries (EABL) was the solo positive change this week; the counter went up 3.8 per cent to close at TZS 2,820 per share. KCB on the other hand, went down 1.39 per cent and closed at TZS 710 per share, down from TZS 720. Foreign investors have maintained their leading position on the market activities on both buy and sell side.

Foreigners bought shares worth TZS 980.34Mln ($0.4Mln) about 65 per cent of total buy side activities, while also selling shares worth TZS 766.93Mln ($0.3Mln) about 51 per cent of the sell side activities. Local investors bought shares worth TZS 34.6 per cent about TSZ 220Mln while selling shares worth TZS 312Mln.

Dividend announcements

During the week under review, the two largest banks and DSE have proposed some lucrative dividends for their investors with respect to 2021 financial year.

The two banks with shareholder’s approval will each pay approximately TZS 94Bln and TZS 96.5Bln in dividends for CRDB and NMB respectively by June this year, equivalent to TZS 36 per share and TZS 193 per share.

DSE has proposed a dividend of about TZS 100.67 per share on its annual report, all subject to shareholder’s approval.

Government Securities

The Bank of Tanzania which is the agent of the government, held a 25-year Treasury bond auction this week carrying an offer amount of about 135Bln.

The auction spiked interest of 404 bidders who tendered a total of TZS 173.91Bln. The auction oversubscribed by about TZS 32Bln only, only a fraction of the oversubscription rates that were observed earlier this year.

Following the reduction of the coupon from 15.95 per cent to 12.56 per cent bidders are discounting the prices for the securities.

This auction saw the highest price decline to 110, while the central bank also lowered the minimum price to 100. About TZS 142Bln was successfully processed by the central bank, returning about TZS 33Bln investor’s money.

Money Market

The Interbank ash Market (IBCM) activity this week, picked up by more than 2 folds from TZS 22Bln to TZS 88.5Bln of this week. The interbank rate also appears to have slightly improved from TZS 1.64 per cent to 1.89 per cent of the previous week. Liquidity in the banking sectors remain under the desired targets of the central bank, hence the lower stable rates compared to previous year where the interbank rate averaged 4.0 per cent.

The value of the shilling against the US dollar according to the Interbank Foreign Exchange Market (IFEM) has shrunk further this week to TZS 2,311.05 from TZS 2,310.51 of previous week about 0.02 per cent down.

The value of the shilling against the US dollar according to the Interbank Foreign Exchange Market (IFEM) has shrunk further this week to TZS 2,311.05 from TZS 2,310.51 of previous week about 0.02 per cent down. The value of the USD traded on the market was 3.83Mln which is close to 3.6illion that was transacted on the previous week.


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