Stock Market
BOTH, the Tanzania
Share Index (TSI) and the All Share Index (DSEI) marginally fell during
the
week that ended on the 26th June 2020. The TSI lost a marginal 0.13
point following a 0.004 percent decline of the domestic market
capitalisation.
The TSI closed the
week at 3,486.86 points while the domestic market cap stood at TZS
9,156.95bln ($3.97bln) at the end of the week.
The DSEI lost 2.35
points to close the week at 1,831.96 points. The drop of the DSEI
follows a 0.13 per cent drop of the total market capitalisation. The
total market cap closed the week at TZS 15,209.5bln ($6.59bln).
The total market
cap is still 11 per cent down compared to the beginning of the year.
This is a result of the meltdown in the Nairobi Stock Exchange (NSE),
during mid-March following the coronavirus outbreak. The NSE has since
been slowly recovering but the losses are still apparent.
The retreat of the
major indices is caused by a decline of prices on four counters, three
being from the cross listed board. The only red domestic counter during
the week was NICOL which released 2.94 per cent of its price, to close
the week at a price of 165/-.
On the cross listed
board, Kenya Airways led the losing streak by 8.3 per cent, although
the counter is still 10 percent up year to date.
The bill to
nationalize the airline is now tabled at the Kenyan parliament waiting
deliberation by legislators. The Kenyan government plans to buy-off
minority shareholders and KLM at a premium from the current market
price.
The premium is yet
to be specified. Other shareholders, mostly banks, shall see their stake
revised into Treasury bonds. Nationalisation is deemed necessary to
save the loss making airline.
Despite a
significant growth in profits since 2017, the net loss margin for the
airline has risen from 6.6 percent in 2018 to 10.1 percent in 2019.
East African
Breweries (EABL) and Jubilee Holdings (JHL) were the other cross listed
counters on the red, and depreciated by 1.06 per cent and 0.93 percent
respectively. The declined counters were enough to offset the
appreciation of 1.94 per cent on the giant KCB Bank counter.
Equity turnover
realised during the week was 86 percent lower compared to the previous
week. The total equity turnover realised totaled to TZS 471.93mln
($0.205mln). A total of 401,621 shares were traded in 73 deals to
realize the turnover. Both, the number of deals and the volume of shares
were fractions of their counterparts during the previous week.
Tanzania Breweries
Ltd (TBL) and Vodacom Plc (VODA), closely led activities during the week
while TBL slightly emerged at the top. TBL traded a total of 42,001
shares at a weighted average price of 5,257/- to realize a turnover of
TZS 220.8mln ($0.096mln), somewhat 46.8 per cent of the total equity
turnover realised during the week.
On the other hand,
Vodacom traded a total 256,120 shares at an average price of 850/-, to
realize a turnover of TZS 217.68mln ($0.094mln), somewhat 46.1 percent
of the equity turnover. Majority of the transactions were still executed
through the pre-arranged board.
Foreign investors
were net sellers during the week, with a net outflow of $0.085mln while
local investors dominated both sides of the market. Local investors
accounted for 99.3 percent and 57.6 percent of the buy and sell side
respectively while foreign investors accounted for the balance.
Auctions on the
Tanzania Mercantile Exchange (TMX) are on-going, with the current season
of sesame seeds. Two auctions for sesame seeds were held during the
week, in warehouses located in Dodoma, Mtwara and Pwani regions.
A total of 5.56mln
kilograms of sesame seeds was sold during the auctions. The highest
price was TZS 1,793/0-realised in Mtwara while the lowest price was TZS
1,442/-realised in Pwani. The prices were relatively down compared to
the previous week.
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