Brokers bullish on stock market prospects in 2016

DAILY NEWS Reporter

BROKERS are optimistic that firms that have recently posted good financial results will push up their share price in the stock market.

Arch Financial and Investment Advisory, Head of Stock Brokerage Edwine Mahenge said stock brokers were pegging their hopes for the stock price stimulation on good financial results companies have started issuing from last year.

“We foresee an increase in the demand of these shares which will push the price further up next week,” Mr Mahenge said in a statement. The brokers are foreseeing an increase in demand for stocks of some companies which traded at decreased price since the beginning of this year, he said.

The analyst predicted that once the investors see good results their appetite for share will increase thus seeing the stock rallying again in the near future.

“Investors’ appetite for shares will also increase to the companies with good performance for year ended (last) December,” Mr Mahenge said in the report issued on Tuesday. Tanzania Securities daily report shows that Tanzania Share Index (TSI) lost some 16.69 per cent to 4,001.27 points of Tuesday.

The TSI was pulled down by share price slumping of NMB which lost 19.6 per cent, TCC (-31.6 per cent), Twiga Cement (-13.63 per cent) and Simba Cement (-21.35 per cent). The only equity that registered a positive growth in price was TOL that surged by 5.26 per cent.

Last week some of the listed companies Swissport Tanzania and TCC published their financial results for the year end December 2015 which showed it made an outstanding profit of 18.14bn/- , equivalent to 40 per cent increment compared to 12.94bn/- of the previous year.

Tanzania Securities, Operations Officer, Sia Mrema, said in a daily market report that the turnover recorded a slight increase yesterday to 79.2m/- from 76.94m/- of previous session. However, Ms Mrema said “volume plummeted to 46,590 from 107,919 shares transacted,” on daily basis.

On week-to-week basis, Arch Financials said, the turnover during the week ended last Friday was slightly higher, gained 145 per cent to 7.27bn/- above previous week. Although, the activity level went down by 57 per cent to 1.9 million shares compared to volumes transacted previous week.

The DSE all share index (DSEI) closed on red. Also Tanzania share index (TSI), industrial and allied (IA) and Banking Sector Index (BI) closed red last week as well. The DSEI went down by 0.3per cent to close at 2,403.92 points while the TSI slid down by 2.6 per cent to close at 3,959.11 points.

On other hand, BI went down to close at 2,550.70 points, lost 2.2 per cent due to price decrease on DCB and NMB, the IA also went down by 3.1per cent to close at 5,319.89 points dragged down by loss on TCC,TBL and Twiga Cement