DSE edges in bear territory

ABDUEL ELINAZA

TWO main indices of Dar es Salaam Stock Exchange have gone down between 0.5 and 1.0 per cent in the last one week to extend bearish mode on stock prices since January.

The Tanzania Securities weekly report showed that the DSE all share index (DSEI) went down by 0.63 per cent to close at 2,479.78 points while the Tanzania Share Index (TSI) slide by 0.88 per cent to settle at 3,710.89 points.

Zan Securities Chief Executive Officer Raphael Masumbuko said the bearish trend was due to two main activities — global market trends and three initial primary offer which were very successful. “The global trends which started since the US economy improved to see negative impact on global markets.

“But also the three main IPOs which were all oversubscribed by huge margins — the trend is people are selling their stocks to buy new ones at IPO to leverage on secondary market,” Mr Masumbuko said. In the last three to four months three firms, NMB, Exim Bank and DSE, have raised capital through the bourse.

Their IPOs were well received by investors. NMB three years bond was oversubscribed by 107 per cent, while Exim six years bond was also oversubscribed by almost 100 per cent.

DSE also sold some of its stake to public in a move toward demutualization that saw investors buying the bourse by 377 per cent. The bourse wanted to raise 7.5bn/- but ended up with over 35bn/-.

“This might be the main reason behind the bearish mode on DSE,” Mr Masumbuko said. According to Tanzania Securities, DSE week-on-week turnover has dropped by 77 per cent to 6.659bn/- from 29.05bn/- of previous week.

The Banking segment Index weakened to settle at 2,116.19 points, 9.91 per cent down from last week’s 2,202.65 points. The Industrial and Allied Index strengthen to 5,186.05 points from last week’s 5,184.33 points, gaining by 0.03 per cent.

The week ending last Friday saw banking segment accounted for 43 per cent of the market value and 86 per cent of the week’s total volume traded where 4,701,958 shares traded on the segment during the week. CRDB accounted for 78 per cent of the BI market value for the week while its share price went down from 320/- to 300/-, when 3,675,887 exchange hands.

NMB counter transacted 1,024,691 shares in comparison to 84,944 shares the previous week. DCB had 190 shares with its price remaining stable.

On manufacturing sector TOL counter was the top mover with a turnover of 383.55m/- from 479,441 shares, higher from last week’s 160 shares. TCC followed with 136,950 shares closing the week at 12,000/- per share and TBL traded 90,937 shares with its price recording 13,750/- per share.

Swissport counter traded 83,856 shares at 6,390/- per share. Twiga had 3,070 shares with its price remaining stable. Simba traded 1,200 shares. Other counters registered no activities