ACTIVITIES on the
Dar es Salaam Stock Exchange are still dwindling as turnovers are at the
lowest in the recent history of the Exchange.
During the week
that ended on 29th May 2020, the total weekly turnover grew more than 22
folds, thanks to an off-market transaction on the TBL counter.
The total equity turnover for the week under review grew to 317.05m/-($0.14mln) realized in a total of 61 deals.
Five off-market
block transactions that took place on Thursday, worth 300m/- ($0.13mln)
were enough to make TBL the top mover of the week. TBL accounted for 95
per cent of the total equity turnover realized during the week.
TBL was followed
from a far by CRDB which accounted for 2.2 per cent of the total weekly
turnover. DCB moved 19,870 shares at an average price of 290/- per
share, leading to a 1.69 per cent deceleration of the counter's price.
On the other hand, NICOL gained 3.03 per cent after moving 8,000 shares.
Due to its lower
weight, the appreciation of NICOL was not enough to offset the
deceleration on the DCB counter, resulting on a slight shed on the
Tanzania Share Index.
The price of NICOL
gained despite a 67 per cent decline in the company's annual profits.
During the week, the fund manager released annual financial results for
FY2019.
In the report, the
company noted an expropriation of the company's 51% stake in Tanzania
Meat Company (TMCL) by the Ministry of Livestock and Fisheries. The
company is to take legal steps to protect shareholders' interests.
NICOL's shareholding register has further been updated to match the register which previously existed at the Exchange.
The total number of
shares as of 31st December 2019 was 69.16mln shares. Further, the
company reported a total comprehensive loss due to a 1.64 per cent
decline in the fair value of financial assets, especially equities.
The total equity
turnover for the month of May dropped significantly by 73.4 per cent
compared to April. The total turnover for May was 373.36m/-($0.16mln)
compared to 1.4bn/- ($0.61mln) realized during April. Turnover has been
declining since March as a result of a global shakeup from the
coronavirus, but also due to stringent trading rules on the Exchange.
The Tanzania Share
Index (TSI) slipped by a marginal of 0.05 point to close the week at
3,491.87 points following a slight deceleration of the price of DCB
Bank.
The domestic market
capitalization followed suit after a marginal loss of 0.001 per cent
equivalent to 120m/- ($0.05mln). The domestic market cap closed the week
at 9.17tri/-($3.98bln).
The All Share Index
(DSEI) gained 2.21 points to close the week at 1,809.09 points
following a 0.12 per cent appreciation of the total market
capitalization.
The total market
cap closed the week at 15.01tri/- ($6.52bln). The appreciation of the
DSEI is a result of a price increase on cross listed giants.
East African
Breweries and KCB Bank both grew by 1.73 per cent and 1.3 per cent,
offsetting a 16.7 per cent and 2.4 per cent deceleration on Kenya
Airways and National Media Group. Jubilee Holdings and Uchumi
Supermarket both remained constant.
Foreign
participation is still minimal, although, through the TBL off-market
transactions, foreign investors accounted for 94.6 per cent of
divestments while locals accounted for 99.57 per cent of investments.
Foreign investors sold a block of TBL while local investors bought the
block.
Market, Bills and Bonds
The interbank rate
remained at 5 per cent during the week under review while activities
slightly slowed down compared to the previous week. The value of
transactions on the Interbank Money Market (IMM) slowed down by a
marginal 1.8 per cent to a total of 16.2bn/- ($7mln). Activities on the
IMM have been increasingly slower possibly as a result of decreased
lending activities following a slowdown of economic activities resulting
from the coronavirus.
In a Treasury bills
auction held on 27th May 2020, the Bank of Tanzania accepted 33% of the
bids while the auction was undersubscribed by 5 per cent. The Bank of
Tanzania offered the usual amount of 107.2bn/- ($46.54mln) while the
public tendered a total of 101.85bn/- ($44.22mln) from 54 bids. The Bank
accepted only 19 bids worth a total of 35.75bn/- ($15.52mln).
The weighted
average yield to maturity (WAYTM) maintained deceleration after losing
23bps during the auction under review. The WAYTM realized during the
auction was 4.52 per cent compared to 4.75 per cent realized during the
previous similar auction.
Currency Market
Activities on the
Interbank Foreign Exchange Market (IFEM) rose by 16 per cent as the
shilling maintained continuous depreciation. The total value of
transactions on the IFEM was 9.75 million US dollars compared to
8.4million US dollars realized during the previous week. The weighted
average exchange rate during the end of the week was TZS 2,303.30/USD.
orbit@orbit.co.tz; imani@orbit.co.tz,
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