Weekly DSE market indices post downward trend

Stock Market

Both DSE market Indices have edged downwards on the week following a price drop in some domestic and cross-listed counters. The DSE Index (DSEI) which tracks the total market recorded a 1.56% decline from TZS 16.04Trn ($6.93Bn) of the previous week to TZS 15.79Trn ($6.82Bln) in the current week.

Furthermore, the domestic Index (TSI) which only tracks local stocks showed more resilience declining by a mere 0.08% to close at TZS 10.28Trn ($4.44bln) on the current week under review.

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Despite the weakening Market Indices, the market was quite active on the week, after recording a whopping 113% and 16% improvement in both turnover and Volume respectively. The surge in market activities was the result of a few block transactions that had taken place during the week. The turnover for the week reached TZS 3.93Bln ($1.7Mln) from 1.2 million shares from TZS 1.84Bln ($0.79Mln) of the previous week.

CRDB counter-led all market activities, accounting for more than 50% of the turnover generated and shares transacted during the week. Other counters with significant market share included SWISS which had generated about TZS 0.90Bln in turnover, NMB TZS 0.9Bln and TCC which generated over TZS 0.6Bln.

All of these counters’ activity was boosted by block trades.

The domestic market was generally stagnant, with most counters maintaining the previous week’s price levels, except for a few counters that had small price changes. DSE and NICO were the only gainers for the week, going up by 9% and 2.85% respectively to close at TZS 2,180 and TZS 360 per share from TZS 2,000 and TZS 350 of the previous week.

On the other hand, SWISS had moved down a few spreads closing at TZS 1,900 per share down from TZS 1,960, which is equivalent to a 3% decline, and TPCC which also declined by 2.05% closing at TZS 3,820 per share.

The cross-listed window was bearish and red during the week under review. All counters had recorded a price drop week to week. National Media Group (NMG) which led the decline was down 6.6% from TZS 380 to TZS 355.

KCB bank was followed closely, down 5.9% closing at TZS 790 down from TZS 840. East African Breweries (EABL) and Jubilee Holdings (JHL) were no different, each recording a 3.36% and 2.75% decline respectively closing at TZS 2,880 and TZS 4,960 respectively.

Contrary to the usual practice where a surge in market activities and the block trade is usually accompanied by foreign injection, this week local investors led both buy and sell side activities.

A total of TZS 3.25Bln ($1.4Mln) was turnover generated from local purchases, equivalent to 82.7% of turnover, where on the sell side, still leading, local investors accounted for TZS 58.87% on the buy side, which is equivalent to TZS 2.3Bln ($0.99Mln). Foreign investors accounted for 17.2% and 41.13% on the buy and sell side respectively.

Government Securities

This week the Bank of Tanzania on behalf of the government held a Treasury bills auction which was looking to raise a total of TZS 1295Bln ($55.9Mln) out of 35- day, 182-day and 364- day papers. The central bank was able to fetch TZS 114.5Bln($49.4Mln) making the auction undersubscribed by 11.6%.

Despite being undersubscribed, the auction was able to fetch more funds than its predecessors because this auction had doubled the offered amount. The yield on the 364-day paper has slightly contracted from 4.45% of the previous auction to 4.26% of the current week, while other tenures have more or less maintained the yields.

Money Market

The volume transacted on the Interbank Foreign Exchange market (IFEM) has slightly shrunk by 32.8% week to week from $9.82Mln to $6.6Mln that was transacted the current week following a slowdown in transactions activities. The Shilling has maintained its value against the USD, recording only a mere decline from TZS 2,316.25 to TZS 2,316.33 at the close of this week.

The Interbank Cash Market Activities this week dwindled significantly, only transacting about TZS 8Bln down from TZS 14Bln of the previous week. The interbank rate has also neutralized this week, recording an average of 4.5% in the two sessions that had transacted.

wende@orbit.co.tz; orbit@orbit.co.tz

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