DSE turnover declines slightly in one week

DAR ES SALAAM: DURING the trading week ending on July 26th, the Dar es Salaam Stock Exchange (DSE) saw a decrease in turnover compared to the prior week.

The total market turnover decreased to 2.037bn/, reflecting a 5.13 per cent downtick from the previous week’s 2.148bn/-. The pre-arranged board registered some activities as TPCC, NMB and TCCL recorded block trades.

Throughout the week, TPCC dominated trading activities, representing 33.18 per cent of the total market turnover, followed by CRDB at 25.37 per cent and NMB at 25.2 per cent.

DSE was the sole gainer for the week, appreciating by 3.45 per cent to close off the week at 2,400/- per share.

However, MKCB depreciated by 8.33 per cent to close off the week at 550/- per share, TPCC lost 4.88 per cent reaching 3,900/- per share, Afriprise’s share price decreased by 4.08 per cent to 235/- at the end of the week, CRDB had a 3.39 per cent decrease in price concluding the week at 570/- per share, NICO depreciated by 2.5 per cent during the week to reach 780/- per share and TCCL lost 2.35 per cent closing off the week at 1,660/- per share.

In terms of market capitalisation, there was a general decrease in the size of the markets, with total market capitalisation decreasing by 1.53 per cent to 17.138tri/- by the week’s end.

Similarly, domestic market capitalisation decreased by 0.76 per cent, reaching 12.05tri/-. Key benchmark indices • All Share Index (DSEI) closed at 2,053.45 points decreasing by 1.53 per cent. • Tanzania Share In dex (TSI) closed at 4,549.50 points decreasing by 0.76 per cent.

Sector Indices • Industrial & Allied Index (IA) closed at 5,085.12 points, down by 0.66 per cent • Bank, Finance & Investment Index closed at 5,501.44 points, down by 1.217 per cent • Commercial Services Index closed at 2,134.27 points, unchanged from the previous week.

ALSO READ: DSE turnover decreases 43pc in a week

Market news round up Zan Securities announces Timiza Fund results. Timiza Fund is an openended collective investment scheme operated by Zan Securities as Fund Manager and Mwanga Hakika Bank as custodian bank.

Zan Securities is a company incorporated under the companies Act, Cap 212 of the laws of the United Republic of Tanzania and licensed by the Capital Markets and Securities Authority (CMSA) as a Licensed Dealing Member of the Dar es Salaam Stock Exchange (DSE), Investment Advisor and Fund Manager.

The public offer for Timiza Fund Units was opened on 27th May 2024 and closed on 26th June 2024.

Following the closing date, Zan Securities is pleased to announce that it received applications for Timiza Fund Units worth 10.38bn/-, compared to the plan of 10bn/-, representing a success rate of 103.8 per cent.

Highlights: Debt Market Primary market On July 24, 2024, the central bank was in the market to offer treasury bills to investors.

The offerings included 900m/- for the 35day maturity Treasury bill, 1.9bn/- for the 91-day T-bill, 2.9bn/- for the 182-day T-bill and 120.45bn/- for the 364day T-bill.

In this auction, demand was weak for the 182 whereas it did not receive any subscription while the 35-day bill received a 23 per cent subscription but no bids were accepted, 91-day bill received 47.9 per cent subscription and the 364day bill received 80.62 per cent subscription rate from investors.

This further shows investors’ appetite for longer term maturities.

The 364day bill saw an increase by 87.22 basis points in the weighted average yield, the weighted average yield being at 9.2777 per cent compared to 8.41 per cent in the previous auction held in early June.

The price floor decreased from 90/95 to 90/53 as the Central Bank allotted less than what was offered in this auction.

The inflation rate was recorded at 3.1 percent in June.

Secondary market During the week ending on July 26th, market activities saw a decrease compared to the previous week.

Overall turnover decreased by 64.12 per cent, from 62.6295bn/- to 22.474bn/-. Similarly, there was a notable decrease in the number of trades, falling from 84 to 63.

Trading activities primarily focused on the long end of the yield curve, with the 20-year and 25-year bonds traded contributing to 97.96 per cent of the total turnover.

In the corporate bond segment, there was a decrease in activity compared to the previous week.

NMB corporate bond NMB2022/25.T1 recorded two trades totalling 51m/- at an average price of 93.29, NMB-2023/26.T1 recorded one trader with a face value of 25m/- at a price of 90/07 while CRDB-2023/28.T1 recorded two trades totalling 12.9m/- at an average price of 94.3.

Outlook: The Q2 reporting season begins next week, with banks leading the way.

Their reports are expected to set a positive tone, as profits are projected to rise by over 20 per cent compared to the same quarter last year.

The banking and finance index has already increased by 22.77 per cent, with further gains likely amid Q2 results. We anticipate that trading in the coming weeks will be dominated by CRDB and NMB.

In the fixed income market, we expect sustained demand at the long end of the yield curve, which will push it downwards.

The middle of the curve is expected to remain flat, while the short end is likely to rise, resulting in a slightly inverted yield curve.