Wednesday, October 28, 2020

Tanzania: Investors' Participation On Dse to Improve On Coming Week

IN the coming week, the market remains firmer, Investors par taking is likely to im prove both local and foreign, and this indicate that the market will remain attractive.

Top active counters such as CRDB, DSE, TPCC and NICOL to continue to outshine the next week's transactions. During the week, the market closed down on Friday after DSEI closed down

by 0.71 per cent while TSI increased by 0.18 per cent, the decline in DSEI was con tributed by NICOL, EABL and KCB share price decrease.

Market turnover decreased to 778.01m/-from 635.28m/-. The total market size decreased by 106.40bn/- ,while domestic market capitalization increased by 16.31bn/-.

In midweek we expect Treasury bill auction to be held by the central bank.

The yields in short-term and medium-term government instruments are expected to increase, with undersubscrip tion expectation if yields will continue to decline further.

Furthermore, the Government securities yield curve will continue to remain normal, with expectations in the yields on treasuries will improve after reaching a resistance level.

In the interbank money market, notwithstanding the increase in the Weighted average rate (WAR) during the previous week, we still reiterate foresee that WAR will continue to increase and

to be within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.

The Bourse Total Market Capitalization decreased by 0.71 per cent to 14.92tri/-from 15.02tri/-

in the previous week, while Domestic Market Capitalization slightly increased by 0.18 per cent to 9.06tri/- from 9.05tri/-.

During the week DSEI declined by 0.71 per cent closed the week at 1,797.24 points from 1,810.06 points in the previous week, while TSI slightly increased by 0.18 per cent to close the week at 3,452.88 points from 3,446.67 points in the previous week, Industrial & Allied index increased by 0.07 per cent to close the week at 4,818.31 points from 4,815.12 points.

The Bank Finance and Investment increased by 0.73 per cent to close the week at 2,228.85 points from 2,212.67 points.

Commercial services index remained flat at 2,141.86 points.

ompanies whose share price decreased are as follows; EABL share price decreased by 3.49 per cent to 3,320/- from 3,440/-, KCB share price decreased by 1.28 per cent to 770/- from 780/-, and NICOL share price decreased by 2.94 per cent to 165/- from 170/-.

On the other hand, CRDB share price increased by 3.13 per cent to 165/- from 160/-, NMG share price increased by 3.03 per cent to 340/- from 330/- and TPCC share price increased by 0.81 per cent to 2,500/- from 2,480/-.

During the week, the market recorded an increase in volume to 1,931,033 shares with 80 deals from 904,346 shares with 52 deals in the previous week.

Total turnover in creased by 22.47 per cent to 778.01m/-from 635.28m/-in the previous week.

During the week, DSE dominated the market after trading shares 447.91m/-being 57.57 per cent of the total weekly turnover, followed by CRDB which traded shares worth 223.11m/-.

The TPCC traded shares worth 70.00m/-, TBL traded shares worth 17.68m/-, NMB traded share worth 7.95 million, NICOL traded shares worth 5.19m/-, TCC traded share worth 4.86m/-, TCCL

traded share worth 1.28m/- and VODA traded shares worth 18,500/-.

Interbank market During the week, the weighted average rate (WAR) for interbank market increased and closed at 3.93 per cent from 3.88 per cent in the previous week.

Total volume traded in creased by 392.63 per cent to 93.60bn/-compared to 19.00bn/-in previous week.

The highest rate in the inter bank market was 4.00 while the lowest was 3.00 per cent compared to 4.00 per cent and 3.75 per cent high and low respectively in previous week.

Debt Market As of the close of the week the outstanding Government bond listed on exchange was 12.30tri/-. On the secondary market, the government bond segment transacted 32.96bn/- with the face value of 31.27bn/-from last week's transaction value and the face value of 1.35bn/-and 1.34bn/-, respectively.

The corporate bond segment transacted 55.16m/-with a face value of 55.40m/-.

During the week, the Government sought to raise 85.65bn/-through a 7-year treasury bond.

The bond was able to attract 33 bids from worth 152.10bn/-.

The government fetched 98.64bn/-, and the bond was oversubscribed by 66.45bn/-. Weighted Aver age Yield (WAY) decreased to 10.06 per cent from 10.62 per cent in the previous auction held on 06th May 2020.

The minimum successful price was 100.00 with the weighted average price for successfully bids being.

Interbank Foreign Exchange Market During the week, total volume traded was USD 4.85million at an average rate of TZS/USD 2,309.07 being a decrease from USD 7.40million at an average rate ofTZS/USD 2,309.05.

 

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