DSE stocks clutch bullish mode

The prices of some stocks continued to rise as the demand for shares surged out of expectations for handsome dividends ahead.

The prices clutched to a bullish trend since last month as financial institutions, manufacturers, aviation sector released their last year’s financials that showed strong earnings.

Vertex International Securities said in its weekly market review that the rising prices reflect investor expectations that the companies are set to issue hefty dividends.

“[DSE’s] equities market recorded a positive performance [last] week as prices continued to improve.

“Surprisingly, Vertex International said, “this happened despite a decrease in foreign buyers.”

The stock market ended last week on a positive note after market capitalisation rose by 0.21 per cent. The bourse trading volumes posted a sharp rise of 55 per cent to 4.293bn/-.

“We expect a positive performance next week as we think the current positive momentum might attract more foreign buyers,” Vertex report said.

Additionally, several stocks experienced price appreciation leading to an overall increase in market capitalisation.

Some of the stocks whose prices went up include NICOL leading the gainers with a 25 per cent increase to close at 400/- per share, followed by TCCIA Investment Public Limited Company (TICL) which increased by 3.57 per cent to close last week at 145/- per share.

NMB gained by 1.74 per cent to 3,500/- per share, while CRDB appreciated by 1.16 per cent to 435/- per share.

On the losing side, Swissport Tanzania suffered a 4.55 per cent decrease in value to close to 1,260/- per share.

Zan Securities said in its weekly market wrap-up that a growing economy typically leads to higher profits for companies, which in turn could drive up stock prices and cause a stock market index to gain points.

“Despite some short-term volatility, the overall trend remains positive, and investors can expect continued [price] growth in the coming weeks,” Zan said.

Total market capitalisation went up by 0.21 per cent to 16.136tri/- and domestic market capitalisation rose by 0.44 per cent to 10.664tri/-.

The Tanzania Share Index (TSI) continues to reach new heights, closing last week at 4,034.24 points, which are levels last recorded in 2018.

“This milestone moment is a clear indication of the growth and stability of the Tanzanian economy, which has been boosted by positive earnings from some of the country’s largest banks,” Zan said.

Additionally, the continued support from the government and regulatory bodies to enhance the stock market infrastructure has also played a key role in attracting investors.