By Stock Market Weekly Performance
Weekly outlook
DURING the week,
the market closed lower after downward movement in DSEI mainly due to
blended share price movement of Kenyan listed companies and local listed
companies. The total market size increased by 19.45bn/-while the
domestic market slightly decreased by 0.34bn/-during the week.
In the coming week,
we anticipate improvement in the stock market performance particularly
improvement in share prices and turnover as market recoup amidst
coronavirus pandemic as well as foreigners started to swamp in the
market.
The market
performance to be maintained by the active local counters in terms of
volume, turnover, and price movements in the bourse. In the industrial
and allied segment, TPCC and TBL is anticipated to remain active during
the week while in the banking, Finance, and Investment segment DSE and
CRDB will maintain their activeness in the market with the lower
volatility in their share prices.
During the week
CRDB shareholders approved Dividend of 17/-per share and DCB
shareholders approved Dividend per share of 5.4/-for the year ended
December 2019. During the AGM which was conducted virtually unveiled
plan to open a subsidiary in the Democratic republic of Congo.
In midweek we
expect 10 years Treasury bond auction to be held by the central bank. we
may see oversubscription of the treasury bond due to the higher
appetite for government securities. Furthermore, the Government
securities yield curve may continue to remain normal, and weighted
average yields are expected to decline, this indicates low funding cost
by the government.
In the interbank
money market, notwithstanding the decrease in the Weighted average rate
(WAR), during the previous week, we still anticipate that WAR to be
within a range of 4.50 percent to 5.00 percent with slight volatility in
the high and low rate.
The Bourse
Total Market
Capitalization increased by 0.31 per cent to 15.20tri/-from 15.22tri/-in
the previous week, while Domestic Market Capitalisation remained flat
during the week to close the week at 9.17tri/-.
DSEI moved
downward by 0.13 percent to close the market at 1,831.96 points from
1,834.31 points in the previous week. Furthermore, TZS index moved
downward slightly by 0.004 percent to close at 3,486.86 points from
3,486.99 points, B&F Index moved downward by 0.02 percent to close
the week at 2,165.62 points from 2,166.06 points in the previous week,
while Industrial & Allied index and Commercial services index
remained flat to close at 4,778.72 points, and 2,356.49 points
respectively. Companies whose share price decreased are as follows; EABL
decreased by 1.06 percent to 3,720/-from 3,760/-, JHL decreased by 0.93
per cent to 5,350/- from 5,400/-, KA decreased by 8.33 per cent to
55/-from 60/-, and NICOL which decreased by 2.94 percent to 165/-from
170/-. While KCB share price increased by 1.94 percent to 790/-from
775/-.
During the week,
the market recorded a decrease in volume to 401,621 shares with 73 deals
from 2,084,625 shares with 106 deals in the previous week. Total
turnover decreased by 85.93 percent to 471.94m/-from 3.36bn/-in the
previous week.
During the week,
TBL dominated the market after trading shares worth 220.81m/-being 46.79
percent of the total weekly turnover, followed by VODA which traded
shares worth 217.68m/-. TPCC traded shares worth 19.29m/-, CRDB traded
share worth 9.76m/-, NICOL traded shares worth 3.43m/-, SWIS traded
share worth 0.91m/-, while DSE falls last after trading shares worth
0.055m/-.
Debt Market
As of the close of
the week the outstanding bond listed on exchange was 11.29tri/-, On the
secondary market, the government bond segment transacted 121.75bn/-with
the face value of 120.84bn/-from last week's transaction value and the
face value of 46.34bn/-and 45.43bn/-, respectively. The corporate bond
segment was dry during the week, compared to last week transaction of
1.35m/-with the face value of 1.5m/-.
Tanzania securities Analyst
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